Amount settled under premature payment option, leading to future sales tax not payable, is revenue income

Background The Mumbai Tribunal has recently held in the case of  Schenectady Specialities Asia Pvt. Ltd. that the difference between the sales tax collected but not deposited by the assessee with the Government under a sales tax deferral scheme, and the amount settled by the assessee under the premature payment option, is to be treated as income of the assessee, for the assessment year in which such sales tax liability is discharged. Facts The assessee is a company and has set up its unit in Raigad District, which is a notified backward area and is thus eligible for incentives as per scheme...