The Commissioner Of Income-Tax vs Ambica Electrolytic Capacitor Pvt. ... on 13 September, 1990
In Jeewanlala (1929) Ltd. v. Commissioner of Income-tax (Central Circle-II) Calcutta one of the questions was that the cash assistance received by exporters from the Government for the purpose of encouraging more exports constitutes revenue receipt or capital receipt and in that context it was fould that this is a subsidy inextricably connected with the act of exportation. It was observed that this is incidental to and supplemental to trading receipts and this is to be treated as revenue receipt. Therefore, this question whether the subsidy received from the Government should be treated as actual cost or not was the question before the Calcutta High Court.