Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2013 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2013 (10) TMI 600 - ITAT PUNEBusiness income or capital gain - Sale of Sales Tax Exemption Entitlement - Incentive granted by Government for setting up a Wind-Mill Power Generation Unit - Whether the subsidy received by the assessee-company from the Government is taxable as revenue receipt or not - Held that:- Mere setting up of the industry did not qualify an industrialist for getting any subsidy. The subsidy was given as help not for the setting up of the industry which was already there but as assistance after the industry commenced production - there is no dispute that the subsidies granted are revenue receipts and have been granted after setting up of the new industries and after commencement of production. Deduction u/s 80IA - The expression "derived from" occurring in section 80-IB of the Act in relation to the business of an industrial undertaking is narrower in connotation than the expression "attributable to" the business of an industrial activity - subsidy cannot be said to be "derived from" the industrial undertaking of the assessee - it can only be ancillary to the profits and gains relatable to or "attributable to" the business of the industrial undertaking and not in the category of profits and gains "derived from" its industrial activity - Following decision of Commissioner of Income-tax Versus Meghalaya Steels Ltd. [2010 (9) TMI 679 - GAUHATI HIGH COURT] and Sahney Steel And Press Works Limited And Others Versus Commissioner of Income-Tax [1997 (9) TMI 3 - SUPREME Court] - Decided against the assessee.
|