Government subsidy received under rehabilitation scheme is capital receipt

Dharmapuri District Co-operative Milk Producers Union Ltd. Vs DCIT (Madras High Court) Madras High Court held that grant-in-aid/ subsidy received from the Government under a rehabilitation scheme is capital receipt and cannot be treated as revenue receipt. Accordingly, question of law is answered in favour of appellant. Facts- The appellant is a co-operative society engaged in procurement of milk, manufacturing by-products and distribution of milk and related items and is a subsidiary to Aavin (Apex Co-operative Society – engaged in distribution of milk). For the assessment year 2007-20...