Subsidy for dispersal of industries in less developed area is capital receipt

DCIT Vs Aurangabad Electricals Limited (ITAT Pune) Held that the subsidy granted for encouraging the dispersal of industries to the less developed areas of the State of Maharashtra cannot be treated as revenue receipt. Facts- The assessee is a company engaged in the manufacture of Automobile and Brake System Components and the Generation of power through windmills. AO treated subsidy received from the Govt. of Maharashtra under the Industrial Promotion Subsidy Package Scheme, 2007 of Rs.5,98,28,000/- as revenue receipt. Being aggrieved, the assessee preferred appeal before CIT(A). CIT(A) delet...