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2021 (1) TMI 395 - AT - Income TaxCharacterization of income - sales tax subsidy - revenue or capital receipt - as per AO it is revenue’s receipt and hence taxable - HELD THAT:- As decided in own case [2012 (7) TMI 406 - ITAT, DELHI] [2012 (7) TMI 406 - ITAT, DELHI] such subsidy has been treated as capital receipt - purpose of granting sales tax incentive is clearly only to provide an incentive for establishment of new industries in the underdeveloped regions or to expand its existing units of the State of Maharashta. That the intention is not to increase the viability of the eligible units but to promote development of further industry and infrastructure in the region - Appeal by the revenue is accordingly dismissed.
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