Capital receipt not become taxable for mere utilisation for incurring revenue expenditure

InterGlobe Aviation Ltd Vs DCIT (ITAT Delhi) In this case CIT instead of appreciating and giving importance to the purpose for which the credits were granted to the appellant, has given undue importance to the fact that ultimately the aircrafts were only taken on lease by the appellant and that the appellant itself credited these receipts by deducting the same from the expenses aircraft lease rental in its Profit and Loss Account. Decision of Bougainvillea Multiplex Entertainment (supra) clearly holds that subsidy need not be linked to a particular asset. Similarly netting off of the proportio...