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2017 (1) TMI 50 - HC - Income TaxNature of grants received - revenue v/s capital receipt - Held that:- The Tribunal has examined the matter at length and has given reasons for reaching conclusions that the subsidy, which was received by the assessee was in the nature of capital subsidy and has been used towards development of capital expenditure as the business of the assessee was to set up waterways. The Tribunal categorically comes to the conclusion that there was no income to the assessee, which was of revenue in nature and in the absence any accrual of income to the assessee on account of the subsidy grants it could not be said that the assessee was liable to pay any taxes on the same. The other finding recorded by the Tribunal is that the project has not commenced and was incomplete and the money was being utilized towards capital expenses. - Decided in favour of the assessee
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