https://www.taxtmi.com/caselaws?id=314120 A subsidy granted under the Government of Maharashtra Package Scheme of Incentives, 2007 was capital in nature because its purpose was industrial dispersal, growth, and employment generation, not meeting the cost of any specific asset. On that basis, it was not taxable as revenue receipt and could not be reduced from the actual cost of fixed assets for depreciation under Explanation 10 to section 43(1). The later insertion of section 2(24)(xviii) did not apply to the assessment years covered. The decisive test was the object of the subsidy, not the timing of payment or its quantification by reference to investment. en-us Fri, 06 May 2022 00:00:00 +0530 Sun, 19 May 2024 08:07:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=314120 A subsidy granted under the Government of Maharashtra Package Scheme of Incentives, 2007 was capital in nature because its purpose was industrial dispersal, growth, and employment generation, not meeting the cost of any specific asset. On that basis, it was not taxable as revenue receipt and could not be reduced from the actual cost of fixed assets for depreciation under Explanation 10 to section 43(1). The later insertion of section 2(24)(xviii) did not apply to the assessment years covered. The decisive test was the object of the subsidy, not the timing of payment or its quantification by reference to investment. Case-Laws Income Tax Fri, 06 May 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=314120