Subsidy - Definition - Law Dictionary Home Dictionary Definition subsidy

Definition :

Subsidy, an aid, tax, or tribute granted to the Crown for the urgent occasions of the kingdom, to be levied on every subject o ability, according to the value of his lands or goods.

The word 'subsidy' in Item 6(g) of the Second Schedule of the Payment of Bonus Act cannot be confined only to those cases where cash payment is made by Government in order that an industry may survive, that even if assistance is given by way of an incentive it would not cease to be a subsidy provided it is a cash payment given by way of assistance and that certain types of assistance particularly those which are only indirect like rebates etc. should be excluded, Shri Ambica Mills No. 1 v. Textile Labour Association, AIR 1973 SC 1081: (1973) 3 SCC 787: (1973) 3 SCR 123.

Subsidy, is grant of money from a government to a private enterprise considered as beneficial to the public, Commissioner of Income Tax v. Grace Paper Industries Pvt. Ltd., 1990 183 ITR 591 (Guj); Commissioner of Income Tax, Hyderabad v. P.J. Chemicals Ltd., AIR 1994 SCW 4352: AIR 1994 SC 2727: (1994) 6 JT SC 330: (1994) 110 ITR 830.