Subsidy for encouraging dispersal of industries to less developed areas cannot be treated as revenue receipt

DCIT Vs Haldex India Pvt. Ltd. (ITAT Pune) ITAT held that Subsidy granted as incentives for encouraging the dispersal of industries to less developed areas of State of Maharashtra, cannot be treated as revenue receipt. The issue in the present appeal relates to the taxability of the subsidy received by the respondent-assessee under the Package Scheme of Incentives, 2007 announced by the Government of Maharashtra. We have gone through the nature of subsidy granted to the assessee by the Govt. of Maharashtra under Package Scheme of Incentives, 2007. A copy of the Scheme has been placed in paper ...