| |
| The Tax Publishers2021 TaxPub(DT) 0225 (Kol-Trib) INCOME TAX ACT, 1961
Section 4
Amount received by assessee as Industrial Promotion Assistance (IPA) from the State Government, was held to be capital in nature because the very scheme under which the expansion of the unit and subsidy was received explained that the purpose of the scheme was for incurring capital expenditure for installation of plant and machinery and for eligible for fixed capital investment.
|
Income - Capital or revenue receipt - Amount received by assessee as Industrial Promotion Assistance (IPA) from the State Government -
Issue was as to whether amount received by assessee as Industrial Promotion Assistance (IPA) from the State Govt. was capital in nature as against revenue receipt as treated in the order under section 254 by AO.Held: Solitary issue involved in instant appeal was squarely covered in favour of assessee by order of Tribunal passed in assessee's own case for the assessment years 2008-09 and 2009-10. Following the same, AO was directed to allow the claim of the assessee for exemption on account of Industrial Promotion Assistance (IPA) by treating the same to be capital in nature.
Applied:Birla Corporation Ltd. v. Dy. CIT 2017 TaxPub(DT) 4185 (Kol-Trib), Dy. CIT v. Birla Corporation Ltd. [ITA. Nos. 971/Kol/2012, ITA. Nos. 942/Kol/2013, ITA. Nos. 298/Kol/2013 and ITA. Nos. 329/Kol/2013, dt. 25-8-2017], Birla Corporation Ltd. v. Dy. CIT 2015 TaxPub(DT) 2933 (Kol-Trib). Followed:Goetze (India) Ltd. v. CIT (2006) 284 ITR 323 (SC) : 2006 TaxPub(DT) 1528 (SC) and CIT v. PJ Chemicals Ltd. [And Other Appeals] 1994 TaxPub(DT) 1271 (SC).
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2007-08
IN THE ITAT, KOLKATA BENCH
 SUBSCRIBE FOR FULL CONTENT
|