Industrial Incentives for Kutch and TUF Subsidy Not Taxable: ITAT Clarifies Capital Nature

DCIT Vs Welspun Living Limited (ITAT Mumbai) ITAT Mumbai: Sales-Tax & TUF Subsidies Held Capital in Nature – 14A Disallowance Restricted to Investments Yielding Exempt Income Tribunal dismissed Revenue’s appeals for both years, upholding CIT(A)’s findings on three key issues — sales-tax incentive, TUF subsidy, & section 14A disallowance.  Sales-Tax Incentive – Capital Receipt: Welspun had set up an industrial unit at Anjar, Kutch post the 2001 earthquake & received excise & VAT incentives under the Kutch Rehabilitation Scheme. AO taxed ₹93.37 cr as revenue receipt,...