M/s Mepco Industries Ltd v. Commissioner of Income Tax, Madurai
2026 INSC 10907 October 202610 min read
Supreme Court: Electricity Subsidy Linked to Power Charges Is Revenue Receipt, Not Capital Receipt
The Supreme Court held that an electricity subsidy calculated with reference to power charges and available after commencement of production is a revenue receipt liable to tax, not a capital receipt.
Case Snapshot
- Case Name
- M/s. Mepco Industries Ltd. v. Commissioner of Income Tax, Madurai
- Citation
- 2026 INSC 1090
- Bench
- Justice Prashant Kumar Mishra and Justice Shree Chandrashekhar
- Date of Judgment
- October 7, 2026
- Area of Law
- Income Tax Act, 1961 — Capital vs. Revenue Receipt — Electricity Subsidy — Purpose Test
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