Infrastructure Grants from State for road projects Are Capital, Not Revenue Receipts: ITAT Mumbai

Maharashtra State Road Development Corporation Ltd. Vs ITO (ITAT Mumbai) The Income Tax Appellate Tribunal (ITAT) Mumbai heard an appeal filed by Maharashtra State Road Development Corporation Ltd. (MSRDC), a wholly owned undertaking of the Government of Maharashtra, against the order of the Commissioner of Income Tax (Appeals)-9, Mumbai, for Assessment Year 2006–07. The appeal challenged several additions made by the Assessing Officer (AO) upon reopening of assessment under Section 147 of the Income Tax Act, 1961. The main issues involved were the taxability of government grants and contrib...