https://www.taxtmi.com/caselaws?id=39116 Borrowing costs incurred to obtain and secure loans for business purposes were treated as revenue expenditure and allowed as business expenditure. A Government subsidy given to support profitable trading operations in competition with imported goods was characterised as a revenue receipt, not a capital receipt or a casual and non-recurring receipt exempt from tax. The right to receive the subsidy accrued only when Government satisfaction was reached and the amount was finally settled by mutual agreement, so the income was assessable in the accounting year in which that settlement was crystallised. The subsidy was therefore taxable in the relevant assessment year. en-us Tue, 06 Jul 1976 00:00:00 +0530 Tue, 13 Apr 2010 10:35:26 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=39116 Borrowing costs incurred to obtain and secure loans for business purposes were treated as revenue expenditure and allowed as business expenditure. A Government subsidy given to support profitable trading operations in competition with imported goods was characterised as a revenue receipt, not a capital receipt or a casual and non-recurring receipt exempt from tax. The right to receive the subsidy accrued only when Government satisfaction was reached and the amount was finally settled by mutual agreement, so the income was assessable in the accounting year in which that settlement was crystallised. The subsidy was therefore taxable in the relevant assessment year. Case-Laws Income Tax Tue, 06 Jul 1976 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=39116