Supreme Court · 2008 INSC 1048 · Decided 16 September 2008
Commissioner of Income Tax, Madras v. Ponni Sugars & Chemicals LTD.
- Court
- Supreme Court of India
- Citation
- 2008 INSC 1048 · [2008] 13 S.C.R. 570
- Case number
- CIVIL APPEAL No. 5694/2008
- Decided
- 16 September 2008
- Bench
- S.H. KAPADIA, B. SUDERSHAN REDDY (2-judge bench)
- Outcome
- Case Partly allowed
- Case type
- Civil
- Acts & sections cited
- Income Tax Act
Headnote
Income Tax Act, 1961: Subsidy receipt - Determination of nature - Whether in- c cludible in total income Held: Character of such receipt has to be determined applying the purpose test i.e. the purpose for which the subsidy is given - In the instant case, the object of in nature to utilize the same only for repayment of term loan undertaken by the assessee for set- D ting up new units/expansion of existing business- Hence such .,._ - receipt was not includible in total income. s. 80 P(2)(a)(i) - Exemption under - In respect of inter- est received from the
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