IPA received as Subsidy is Capital in nature & hence Not Taxable

DCIT Vs SovaIspat Limited (ITAT Kolkata) The issue under consideration is whether industrial Promotion Assistance (IPA) received by the assessee-Company from the West Bengal Government is taxable under income tax? In the present case, the West Bengal Government granted a subsidy by way of IPA for setting up of large/medium/small scale eligible unit which is prescribed in the WBIS 2000 and the unit has to be set up in either group B or C areas prescribed in the said scheme. The assessee had set up a new unit in the Bankura District of West Bengal area which falls in the group C area of the Sche...