https://www.taxtmi.com/caselaws?id=24813 Sales tax subsidy under a State industrial incentive scheme for backward areas was treated as a capital receipt, because its character depended on the scheme's object of promoting industrial investment and development rather than on trading operations. The fact that the subsidy was linked to substantial expansion of an existing unit did not alter its tax treatment, since the decisive factor remained the purpose for which the incentive was granted. The subsidy was therefore not assessable as revenue income. en-us Mon, 18 Jul 1988 00:00:00 +0530 Fri, 22 Jan 2010 15:44:22 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=24813 Sales tax subsidy under a State industrial incentive scheme for backward areas was treated as a capital receipt, because its character depended on the scheme's object of promoting industrial investment and development rather than on trading operations. The fact that the subsidy was linked to substantial expansion of an existing unit did not alter its tax treatment, since the decisive factor remained the purpose for which the incentive was granted. The subsidy was therefore not assessable as revenue income. Case-Laws Income Tax Mon, 18 Jul 1988 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=24813