Subsidy received under PSI 2007 Scheme from Govt of Maharashtra is Capital Receipt

DCIT Vs. Bhagyalaxmi Rolling Mill Pvt. Ltd. (ITAT Pune) The issue for adjudication in all these appeals is the assessee having received subsidy from Government of Maharashtra under Package Scheme of Incentives of 2007 (PSI-2007), Whether the said subsidy is capital receipt or a revenue receipt. The assessee-company had set up a mega project as defined in Government of Maharashtra’s PSI 2007 in Jalna. Under the scheme PSI 2007 mega project the assessee has received capital incentive subsidy in different years from A.Y. 2010-11 to 2015-16.This incentive being capital receipt was credited t...