Sundaram Finance Ltd. v. ACIT (2019) 262 Taxman 465 / 413 ITR 298 / 178 DTR 351/ 310 CTR 774(Mad.)(HC)

S. 4 : Charge of income-tax–Subsidy from foreign company – Capital receipt not liable to tax.

Allowing the appeal of the assessee the Court held that in order to set up a joint venture in insurance sector, a foreign company gave capital subsidy to assessee in order to enable it to contribute its share in share capital of joint venture company, amount of subsidy so received was to be regarded as capital receipt not liable to tax.  (AY. 2002 03)