Case Law Details
Jindal (India) Ltd. Vs ACIT (ITAT Delhi)
ITAT Delhi held that power incentive granted by the Government of West Bengal is actually given for sole intention of setting up new industry and attractive private investment and hence the same is capital receipts and not chargeable to tax.
Facts-
During the course of the scrutiny assessment proceedings assessee filed a revised computation of income wherein it claimed deduction of the amount of incentive of sales tax paid and also of the amount of power incentive granted by the Government of West Bengal. The claim of the assessee was rejected by the AO relying upon the decision by the Hon’ble Supreme court in the case of Goetze India Limited 284 ITR 323.
The assessee agitated the matter before the CIT(A) but without any success.
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