Maharashtra PSI-2007 incentive is capital receipt: ITAT allows ₹37.85-cr subsidy, rejects revenue tag

Shriniwas Engineering Auto Components Pvt. Ltd. Vs ACIT (ITAT Pune) ITAT Pune allowed assessee’s appeal & held that ₹37.84 crore incentive received under Package Scheme of Incentives (PSI), 2007 of Government of Maharashtra is capital receipt, not chargeable to tax. Tribunal noted that identical issue stood consistently decided in assessee’s own case for earlier years, including AY 2014-15, where it was held that the object of PSI-2007 is to encourage setting up of industries in backward areas, & computation of subsidy with reference to fixed-asset investment is only a measure of...