The Tax Publishers2019 TaxPub(DT) 0291 (SC) : (2019) 261 TAXMAN 0250 INCOME TAX ACT, 1961
Section 261 Section 4
Where the department preferred SLP to appeal against the judgment of Calcutta High Court in Pr. CIT v. State Fisheries Development Corporation Ltd. [ITAT No. 19 of 2017, GA No. 413 of 2017, dt. 14-5-2018] : 2018 TaxPub(DT) 4367 (Cal-HC), whereby the High Court held that since the sum was given by the State Government to the assessee, a wholly-owned company, which was facing acute cash crunch, to keep the assessee floating and protecting employment in a public sector organization and for survival of the assessee, therefore, even though large part of the funds was applied for salary and provident fund dues, the funds were treated as capital receipt, thus, the Tribunal rightly treated the funds as capital receipt, instead of revenue receipt, the Supreme Court condoned delay and dismissed the SLP.
|
Appeal (Supreme Court) - Special leave petition - Income - Capital or revenue receipt--Subsidy given by State Government to assessee, a wholly-owned company, for survival
Department preferred SLP to appeal against the judgment of Calcutta High Court in Pr. CIT v. State Fisheries Development Corporation Ltd. [ITAT No. 19 of 2017, GA No. 413 of 2017, dt. 14-5-2018] : 2018 TaxPub(DT) 4367 (Cal-HC), whereby the High Court held that since the sum was given by the State Government to the assessee, a wholly-owned company, which was facing acute cash crunch, to keep the assessee floating and protecting employment in a public sector organization and for survival of the assessee, therefore, even though large part of the funds was applied for salary and provident fund dues, the funds were treated as capital receipt, thus, the Tribunal rightly treated the funds as capital receipt, instead of revenue receipt.Held: The Supreme Court condoned delay and dismissed the SLP.
SUBSCRIBE FOR FULL CONTENT |