revenue receipt and not
a capital receipt, irrespective of the purpose of the scheme under which such
2
incentive or subsidy is made available ... seen as a capital subsidy and has to be regarded, as such, as a capital receipt
and not a revenue receipt.
Accordingly
capital investment calculated on
the basis of the quantum of investment in
capital and, therefore, receipt of such subsidy
was on capital account ... subsidy
was on capital account. Therefore, it is the
object for which the subsidy/assistance is given
which determines the nature of the incentive
subsidy
capital investment calculated on
the basis of the quantum of investment in
capital and, therefore, receipt of such subsidy
was on capital account ... subsidy
was on capital account. Therefore, it is the
object for which the subsidy/assistance is given
which determines the nature of the incentive
subsidy
treated as a
revenue receipt or a capital receipt. It also held that if the subsidy was given for the
running of the business ... revenue receipt and if
it was given to meet any capital cost of any asset, it had to be seen as a capital receipt
judgment of this Court that these subsidies are
in the nature of capital receipts. Now the language of the proviso is
relied upon ... feature films. The State of
Maharashtra introduced the scheme for grant of subsidy to Marathi
feature films. The main object and salient features of this
question of law: -
(i) Whether the interest subsidy and excise refund
would be treated as capital receipt or revenue receipt
for the purpose of computation
petitioner is squarely
covered by it because in that case also capital subsidy/investment incentives, as
claimed by the petitioner therein, was ordered ... capital subsidy/investment incentives to the petitioner
within a period of two months from the date of receipt of certified copy of this
order.
(RAKESH
whether it ought
to be regarded as a capital receipt or a revenue receipt.
As to the first issue raised by the Revenue, no prejudice ... capital asset upon receiving the subsidy. Clearly, on the basis of
the facts as established, the subsidy had to be regarded as a capital receipt
interest,
subsidy and power subsidy and treat both the interest and the
power subsidy for the purpose of calculating MAT as capital
receipt in contradiction ... reported in 255 ITR 273 without
considering the fact and the receipt credited in Profit & Loss
Account credited in accordance with Part
form of Sales Tax Exemption was a capital
receipt and not a revenue receipt and also not to
be included in book profit under Section ... electrical
duty exemption of Rs. 6,57,98,024/- was a
capital receipt and not a revenue receipt and
also not to be included
