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2023 (6) TMI 1046 - SCH - Income TaxNature of expenses - Expenses incurred for replacement of membrane cells-II - revenue or capital expenditure - HELD THAT:- This Court is not inclined to interfere with the impugned judgment and order of the High Court treating it as revenue expense deleting the addition treating the same as capital expenditure by following the rule of consistency. Nature of receipt under the subsidy scheme - subsidy in the form of Sales Tax Exemption as 'capital receipt' or 'revenue receipt - HELD THAT:- The special leave petitions are dismissed in the light of orders of this Court in Deputy Commissioner of Income Tax vs. Munjal Auto and Nirma Ltd. [2018 (5) TMI 1738 - SC ORDER] The order in Munjal Auto relied upon judgment of this Court in Commissioner of Income Tax vs. M/s Chaphalkar Brothers [2017 (12) TMI 816 - SUPREME COURT]. This Court is also satisfied that the terms of the scheme in this case require the recipient of the benefit to set up a new unit or substantially expand the existing unit and utilize substantial portion of the amount retained (at least 50% of the subsidy) for the capital purposes. For these reasons, the impugned judgment does not call for interference. SLP dismissed.
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