2016 (12) TMI 1854

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....l the Special Leave Petitions. 2. The Assessment Years in question are 1999-2000, 2000-2001 and 2001-2002. The point involved in the present appeals is short and precise. The subvention received by the Assessee - Company from its parent Company in Germany in a situation where the Assessee - Company was making losses has been treated to be a revenue receipt by the Assessing Officer. Though the Fir....

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....n-aid received by an Assessee is utilized for acquisition of an asset, the same must be understood to be in the nature of a revenue receipt was held by the High Court to be a principle of law applicable to all situations. The aforesaid view tends to overlook the fact that in both Ponni Sugars (supra) and Sahney Steel (supra) the subsidies received were in the nature of grant-in-aid from public fun....