Sales tax subsidy under Dispersal of Industries Package of Incentives Scheme is capital receipt

CIT Vs Indo Rama Textiles Ltd. (Delhi High Court) Delhi High Court held that sales tax subsidy/incentive received by the respondent/assessee under the Dispersal of Industries Package of Incentives, 1993 Scheme is a capital receipt and not revenue in nature. Facts- The issue which arises for consideration in the appeals concerns the nature of the benefit received by the respondent/assessee. The benefit which the respondent/assessee has obtained from the Government of Maharashtra, in the AYs in issue, is a sales tax subsidy in the manner and form prescribed under the scheme titled “Dispersal o...