Sales Tax Subsidy Non-Taxable as It Was Meant for Industrial Development: ITAT Ahmedabad

DCIT Vs Ambuja Cements Limited (ITAT Ahmedabad) The Income Tax Appellate Tribunal (ITAT), Ahmedabad dismissed the Revenue’s appeal and upheld the order of the Commissioner of Income Tax (Appeals) allowing the assessee to exclude sales tax incentive/subsidy of ₹1,28,25,66,755 from computation of total income under the normal provisions of the Income Tax Act and from computation of book profits. The Tribunal held that the sales tax subsidy constituted a capital receipt and was therefore not taxable. The Revenue contended that the Assessing Officer had treated the sales tax incentive as taxab...