Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2014 (12) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2014 (12) TMI 933 - HC - Income TaxIncentives/subsidies amounted to capital receipt or not - Whether the Tribunal erred in not holding that incentives/subsidies in the form of exemption from sales tax received by the assessee constituted capital receipt not liable to tax – Held that:- The assessee is in receipt of a sales tax subsidy – Tribunal was of the view that sales tax subsidy received by the assessee is a revenue receipt - a perusal of the judgment in Commissioner of Income Tax, Madras Versus Ponni Sugars & Chemicals Ltd. [2008 (9) TMI 14 - SUPREME COURT] reveals that it has been already held that whether a subsidy is a revenue or a capital receipt would depend upon the nature and purpose of a subsidy – thus, the order passed by the Tribunal is set aside and the matter is restored to the Tribunal for re-determining the question whether sales tax subsidy is a revenue or a capital receipt by reference to the nature and purpose of the subsidy – Decided in favour of assessee.
|