2019 (3) TMI 1721

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.... Lahiri, Adv. For the Respondent : Mr. R.K. Murarka, Adv., Mr. S.D. Verma, Adv., Mr. A.P. Gomes, Adv. ORDER The Court: This is an appeal under Section 260A of the Income Tax Act, 1961. The only question which has to be answered in this appeal is whether the subsidy or incentive in question received by the assessee company was to be taken as capital or revenue receipt. According to Mr. ....

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....nounced the decision in this case that it was to be treated as such. In our view, that was not the correct approach. The subsidy scheme had to be analysed threadbare. The question whether the subsidy incentive was being utilized for the purpose of meeting the interest liability of the company on loans and advances taken by it to set up its plant and machinery had to be investigated and a firm c....