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2022 (5) TMI 1633 - ITAT PUNENature of receipt - subsidy received from Government of Maharashtra under Package Scheme of Incentives of 2007 ("PSI 2007") - Applicability of Amended Provision of Section 2(24)(xviii) of the Income Tax Act - whether the said subsidy is capital receipt or a revenue receipt? - HELD THAT:- The whole purpose and the grant of subsidy under PSI 2007 by Government of Maharashtra was to promote industrial growth in the less developed areas of the State and also to provide employment in the area. Once this purpose is established the subsidy has to be a capital receipt. However, the position has changed w.e.f. 01.04.2016 relevant to A.Y. 2017-18 onwards with the amended provision of sub-clause (xviii) to sec. 2(24) of the Act. However, at present, we are concerned with A.Y. 2011-12 to 2015-16. Therefore, the amended provision of sec. 2(24) sub-clause (xviii) is not applicable to the years under consideration and thus as a natural consequence the subsidy received by the assessee would therefore, not form part of its total income. Subsidy received by the assessee was capital in nature and not chargeable to tax. Decided against revenue.
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