Supreme Court of India

Commissioner of Income Tax, Madras v. Ponni Sugars & Chemicals Ltd.

Neutral citation
Reported as [2008] 13 S.C.R. 570
Bench S.H. Kapadia and B. Sudershan Reddy JJ.
Decided 16 September 2008

INSC stands for INDIAN SUPREME COURT. A neutral citation scheme assigned by the Court itself, so a judgment can be cited without depending on a commercial law reporter. INSC is the neutral citation scheme assigned by the Supreme Court, so a judgment can be cited without depending on a commercial law reporter.

2 Supreme Court benches have cited this judgment.

From the 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 the subsidy was capital in nature to utilize the same only for repayment of term loan undertaken by the assessee for set- 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 members of

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