https://www.taxtmi.com/caselaws?id=791862 Industrial incentive refunds under the Jammu & Kashmir policy, including refund of GST and excise duty for eligible units in notified areas, are characterised by the purpose of the subsidy rather than its receipt form. Where the incentive is designed to promote industrial setting up and expansion, it is treated as a capital receipt and not as trading income. The analysis applies the character-and-purpose test, rejects treatment as revenue receipt merely because the amount was disclosed in the return, and notes that such refund is not covered by section 2(24)(xviii) unless expressly brought within the charging provision. en-us Fri, 15 May 2026 00:00:00 +0530 Tue, 19 May 2026 08:18:18 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=791862 Industrial incentive refunds under the Jammu & Kashmir policy, including refund of GST and excise duty for eligible units in notified areas, are characterised by the purpose of the subsidy rather than its receipt form. Where the incentive is designed to promote industrial setting up and expansion, it is treated as a capital receipt and not as trading income. The analysis applies the character-and-purpose test, rejects treatment as revenue receipt merely because the amount was disclosed in the return, and notes that such refund is not covered by section 2(24)(xviii) unless expressly brought within the charging provision. Case-Laws Income Tax Fri, 15 May 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=791862