On the question whether the subvention received by the assessee-company from its parent company in Germany in a situation where the assessee-company was making losses had to be treated as a capital or revenue receipt: Held, that the voluntary payments made by the parent company to its loss making Indian company could be understood to be payments made in order to protect the capital investment of the assessee-company. The payments made to the assessee-company by the parent company for the assessment years in question could not be held to be revenue receipts. (AY. 1999-2000, 2000- 2001, 2001-2002)
Siemens Pub. Communication Network Ltd v. CIT (2017) 390 ITR 1 / 291 CTR 22/ 244 Taxman 188 (SC)
S. 4: Charge of income–tax -Capital or revenue- Subvention received by assessee from parent company at time when assessee making losses, payment to protect capital investment was held to be not revenue receipt. [S.2(24), 28(i)]