Income Tax: Constitutional validity of sub-clause (xviii) to section 2(24) under challenge

Serum Institute of India Private Limited Vs Union of India (Bombay High Court)

Issue under consideration

Whether sub-clause (xviii) to section 2(24) can be held as unconstitutional as it covers within its ambit capital subsidies. The said issue was analysed in the case of Serum Institute of India Private Limited vs. Union of India [W.P. No. 3735 of 2021]

Facts of the case

Petitioner is a biotechnology company manufacturing drugs and vaccines. Petitioner’s project qualified as ultra mega project under ‘Package Scheme of Incentives 2013’ introduced by Government of Maharashtra to promote industries in less developed areas of State of Maharashtra. Petitioner was entitled to receive benefits of Electricity Duty, Stamp Duty, VAT/CST, SGST and PF & ESIC under the said scheme.

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