https://www.taxtmi.com/caselaws?id=418567 Sales tax incentive under the West Bengal industrial promotion scheme was treated as a capital receipt because the subsidy's purpose was to encourage setting up industry in a backward area, not to supplement trading operations. Fertilizer subsidy was treated differently: it reimbursed part of the manufacturing and selling cost under a controlled pricing mechanism, giving it a direct nexus with the eligible industrial undertaking. On that basis, it formed profits derived from the business and qualified for deduction under section 80(IB). en-us Wed, 16 Feb 2022 00:00:00 +0530 Thu, 05 May 2022 16:24:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=418567 Sales tax incentive under the West Bengal industrial promotion scheme was treated as a capital receipt because the subsidy's purpose was to encourage setting up industry in a backward area, not to supplement trading operations. Fertilizer subsidy was treated differently: it reimbursed part of the manufacturing and selling cost under a controlled pricing mechanism, giving it a direct nexus with the eligible industrial undertaking. On that basis, it formed profits derived from the business and qualified for deduction under section 80(IB). Case-Laws Income Tax Wed, 16 Feb 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=418567