Dismissing the appeal of the revenue the Court held that; Power subsidy which is available only to new units and units which have undergone an expansion , purpose being incentive as a capital subsidy has to be regarded as capital receipts .
PCIT v. Shyam Steel Industries Ltd ( 2018) 303 CTR 628/168 DTR 152 ( Cal) (HC)
S. 4 : Charge of income-tax -Power subsidy- Capital or revenue- Purpose test- Power subsidy which is available only to new units and units which have undergone an expansion , purpose being incentive as a capital subsidy has to be regarded as capital receipts .[ S.28(i) ]