2021 (1) TMI 395

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..... AT, DELHI] [ 2012 (7) TMI 406 - ITAT, DELHI] such subsidy has been treated as capital receipt - purpose of granting sales tax incentive is clearly only to provide an incentive for establishment of new industries in the underdeveloped regions or to expand its existing units of the State of Maharashta. That the intention is not to increase the viability of the eligible units but to promote developme .....

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..... iable to tax. 4. The AO was of the firm belief that the sales tax subsidy of ₹ 61.20 crores received by the assessee is revenue's receipt and hence taxable. The AO accordingly treated the same as income of the assessee. 5. The assessee carried the matter before the CIT(A) and referred to the decision of the Tribunal in asstt. Year 1997-98, 2003-04 and 2004-05 and pointed out that such subs .....

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..... s covered by the Special Bench decision of the Tribunal in the case of Reliance Industries Ltd. (Supra). Though the scheme applicable in the case of Reliance Industries Ltd. was 1979 scheme, however, in the 1993 scheme terms and conditions were of the same nature and intent. For this purpose, a comparative chart was referred by the Ld. CIT(A). As per the comparative chart the terms and conditions .....

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