INCOME TAX ACT, 1961

Section 28

Business income - Subsidy received - Revenue or capital receipt -

Revenue had raised the appeal before Tribunal holding that CIT(A) erred in appreciating the fact that assessee himself had acknowledged that incentive received by assessee was of revenue nature while offering part of the operational incentive received by it under the scheme in its return of income and hence erred in directing AO to consider the sum offered by assessee as capital receipt and hence not taxable. Held: Relying on decision in case of M/s. John Deere Equipments (P) Ltd. v. Dy. CIT in (ITA No.30/PN/2012, 275/PN/2012, dt. 31-3-2015) held that subsidy received by assessee was capital in nature. In view of decision of Tribunal in assessee's own case in hand in the earlier year the said subsidy was to be treated as capital receipt in the hands of assessee. Though, assessee was in the original return of income had included the same in its hand, but the same was to be excluded being not taxable.

Followed:M/s. John Deere Equipment (P) Ltd., The Asstt. CIT, Circle 11 (1), Pune v. The Dy. CIT, Circle 11 (1), Pune and Vice-Versa. M/s. L&T John Deere (P) Ltd., in (ITA No.30/PN/2012, 275/PN/2012, dt. 31-3-2015)

REFERRED :

FAVOUR : In assessee's favour

A.Y. :

INCOME TAX ACT, 1961

Section 36(1)(va)

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