Case Law Details
Birla Corporation Limited Vs DCIT (ITAT Kolkata)
ITAT Kolkata held that interest subsidy received under the amended Rajasthan Investment Promotion Scheme, 2003 is capital receipt and hence the same is not chargeable to tax.
Facts-
The Department’s appeal relates to the assessee’s claim that interest subsidy, since renamed “Capital Investment Subsidy”, of Rs. 3,04,22,210/- received under the amended Rajasthan Investment Promotion Scheme, 2003 in respect of expansion undertaken at the assessee’s Chanderia Cement Works should be treated as a capital receipt. The AO held that the subsidy was incidental to carrying on of the business of the assessee and treated the same as revenue receipt. On appeal, the CIT(A) held it to be a capital receipt by following the Tribunal’s decision in assessee’s own case.
Conclusion-
Please become a Premium member. If you are already a Premium member, login here to access the full content.