Sales tax subsidy received by assesee from Haryana Govt. is capital receipt

Sunbeam Auto Ltd Vs ACIT ( ITAT Delhi) It has been submitted by the Ld. AR that the assessee offered the amount of subsidy received by it in AY 2007-08, 2008­09, 2009-10 and 2010-11 as income which had been taxed under section 143(3) of the Act by the Ld. AO. Subsequently, the assessee filed an application under section 264 of the Act before the Principal Commissioner of Income Tax (Pr. CIT) pleading that the assessee had erroneously treated the subsidy received from Haryana Govt. as its income. The Ld. AO may, therefore, be directed to treat it as capital receipt not subject to tax. It is po...