https://www.taxtmi.com/caselaws?id=767014 The ITAT Pune ruled in favor of the Revenue regarding the nature of government financial aid receipts. Following the Bombay HC decision in Serum Institute case, the tribunal applied the purpose test - subsidies for daily business operations constitute taxable revenue receipts, while those for setting up or expanding units are non-taxable capital receipts. However, the Finance Act 2015 amendment to Section 2(24)(xviii) made all government assistance taxable unless used for determining asset costs, effectively ending such disputes. The Revenue's appeal was allowed. en-us Wed, 08 Jan 2025 00:00:00 +0530 Sat, 08 Mar 2025 08:32:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=767014 The ITAT Pune ruled in favor of the Revenue regarding the nature of government financial aid receipts. Following the Bombay HC decision in Serum Institute case, the tribunal applied the purpose test - subsidies for daily business operations constitute taxable revenue receipts, while those for setting up or expanding units are non-taxable capital receipts. However, the Finance Act 2015 amendment to Section 2(24)(xviii) made all government assistance taxable unless used for determining asset costs, effectively ending such disputes. The Revenue's appeal was allowed. Case-Laws Income Tax Wed, 08 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=767014