ITAT adjudicated compensation received for wind turbine ...

Wind Turbine Generator Compensation Deemed Capital Receipt, Not Taxable Under Performance Shortfall Settlement

May 1, 2025

Case Laws Income Tax AT

ITAT adjudicated compensation received for wind turbine generator (WTG) under-performance as capital receipt, not taxable. Relying on precedents in PCIT vs Xpro India Ltd. and Ramkrishna Forgings Limited, the tribunal determined the compensation from equipment supplier for technical performance shortfall constitutes a capital receipt. The Revenue's prior acceptance of similar claims in subsequent assessment year further substantiated the ruling. Tribunal directed assessment officer to exclude compensation amount from assessable income, effectively allowing the assessee's appeal and confirming the non-taxable nature of the compensation.

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ITAT adjudicated compensation received for wind turbine ...

Wind Turbine Generator Compensation Deemed Capital Receipt, Not Taxable Under Performance Shortfall Settlement

May 1, 2025

Case Laws Income Tax AT

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