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Amount settled under premature payment option, leading to future sales tax not payable, is revenue income
Case Law Details
- Case Name
- Schenectady Specialities Asia Pvt Ltd Vs ACIT (ITAT Mumbai)
- Appeal Number
- Only available for paid members
- Courts
- ITAT Mumbai
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...
