Subsidy for industrial unit expansion under Package Incentive Scheme is capital receipts

Chaitanya Steelshape Vs ITO (ITAT Pune) ITAT Pune held that subsidy received by the assessee is towards the investment made in the expansion of its industrial unit under the Package Incentive Scheme 2001 is ‘Capital’ receipts. Accordingly, the same is not taxable. Facts- The assessee is a private limited company engaged in the business of manufacturing Press parts, Engineering goods, Fabrication, and Trading thereof. During the course of assessment proceedings, AO observed that the assessee received a subsidy of Rs.3,22,200/- in the year under consideration, which was taken to “Reserve a...