Compensation Received would be Capital in nature if Cost of Project gone down

Tata Advanced Systems Limited Vs ACIT (ITAT Mumbai)

Conclusion:  In present facts of the case, the Hon’ble Tribunal by relying on the previous Judgments of the Tribunal in assessee’s own case for previous Assessment Years held that the compensation so received by the assessee company would only go to reduce the cost of project as it is effectively meant to cover up for the expenses and investments incurred by the assessee for the said project. Hence, the receipt of compensation would be capital i

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