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2017 (2) TMI 1456 - AT - Income TaxSubsidy receipt - Addition on receipts of Industrial Promotion Assistance(IPA) - revenue or capital receipts - whether sum received by the assessee as Industrial Promotion Assistance under the West Bengal Incentive Scheme 2000 for establishing the industry in the state of West Bengal which is disbursable by way of sales tax paid is a capital receipt not chargeable to tax? - HELD THAT:- As decided in S M/S. BUDGE BUDGE REFINERIES LTD. [2016 (10) TMI 1307 - ITAT KOLKATA] - Keeping in view the objects of the West Bengal Incentive Scheme 2000 and various judicial precedents relied upon hereinabove, we hold that the subsidy is to be treated as capital receipt not chargeable to tax in the hands of the assessee and not in the years under appeal Sole purpose behind the grant of assistance is to tide over the financial crisis and promotion of industries and that both these activities are related to capital field and cannot be linked up with day to day operations of the appellant in any manner. Respectfully treat WBIPA as a capital receipt and direct the A.O to delete the addition - Accordingly, the grounds raised by the revenue dismissed.
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