Incentive received under sales tax scheme is capital receipt: Bombay HC

Bajaj Auto Limited Vs DCIT (Bombay High Court) Bombay High Court held that incentive/ subsidy received under sales tax scheme, granted by the State Government under both the 1979 as well as 1983 Schemes, is capital receipt and hence not chargeable to tax. Facts- The issue involved in the present appeal is that whether an incentive received in sales tax liability under a Scheme formulated by the State Government would be on capital account, exempt to taxation, or on revenue account, liable for taxation. Conclusion- The incentives/subsidy granted by the State Government under both the 1979 as we...