Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (3) TMI 504 - AT - Income TaxNature of receipt - revenue or capital receipt - subsidies given in the form of sales tax subsidy and refund of interest on term loan - HELD THAT:- Package Scheme of Incentives (PSI) introduced by the Government of Maharashtra was for the purpose of encouraging entrepreneurs set up/expansion units in the developing region of the State. Further PSI was revised for intensifying and accelerating the process of dispersal of industries to the less developed areas of the State coupled with the objects of generating mass employment opportunities. Since the object of the subsidy was setting up of Industrial units in backward areas the same has been held to be capital in the earlier year by the ld. CIT (A) as well as by the Tribunal by following the principle laid down by the Hon’ble Supreme Court in the case of Ponni Sugars and Chemicals Ltd., [2008 (9) TMI 14 - SUPREME COURT] Similarly, the relevant finding on the issue of interest subsidy on term loan for technical upgradation fund scheme by the Central Government. As relying on INDOCOUNT INDUSTRIES LTD. [2018 (2) TMI 2024 - ITAT DELHI]subsidy received by the assessee is capital in nature. Appeal of the revenue is dismissed.
|