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TMI Blog2018 (8) TMI 1474X X X X Extracts X X X X X X X X Extracts X X X X ..... assets and the objectives of the scheme clearly spelt out such purpose. In the context of the scheme, it could never have been understood to imply that the subsidy was for the purpose of the day-to-day business of the assessee or any entrepreneur qualified to receive it. The subsidy was clearly for the purpose of upgrading the machinery and plant and for acquiring capital assets. - Decided agains ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssee which is not exempted from tax. It is fairly submitted on behalf of the Revenue that the second question has already been answered by this Court in favour of the assessee. Accordingly, it is only the first question that needs to be gone into. The Commissioner (Appeals) read the relevant scheme and was of the opinion that the subsidy received had to be regarded as a revenue receipt. Befo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Court held that if the subsidy was to help the assessee to set up its business or complete a project, the money had to be treated as having been received for capital purposes. In Ponni Sugars , the Supreme Court held that the character of the subsidy is determined with respect to the purpose for which it is granted and the point of time when the subsidy is made available to the assessee may not ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctives of the scheme clearly spelt out such purpose. In the context of the scheme, it could never have been understood to imply that the subsidy was for the purpose of the day-to-day business of the assessee or any entrepreneur qualified to receive it. The subsidy was clearly for the purpose of upgrading the machinery and plant and for acquiring capital assets. In the light of the judgments which ..... X X X X Extracts X X X X X X X X Extracts X X X X
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