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2018 (12) TMI 1869 - AT - Income TaxCharacterization of receipt - Industrial Promotion Subsidy by way of refund of Sales Tax paid - Whether subsidy received by way of refund of sales tax paid is capital in nature? - HELD THAT:- As decided in own case [2017 (4) TMI 44 - ITAT PUNE]the said incentive received by the assessee under PSI, 2007 Scheme in the form of refund of sales tax was capital receipt and not liable to tax. The said ratio laid down by the Tribunal is squarely applicable to the facts and issues raised in the present case also, since the subsidy by way of refund of sales tax has been received by the assessee under the said scheme itself. We are referring to the order of Tribunal in this regard but the same is not being reproduced for the sake of brevity. Following the same parity of reasoning, we hold that the subsidy received by assessee under the PSI, 2007 Scheme by way of refund of sales tax is not taxable being capital receipt, in the hands of assessee. The grounds of appeal raised by assessee are thus, allowed.
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