9911796707
TMI Blog2024 (4) TMI 1176X X X X Extracts X X X X X X X X Extracts X X X X ..... revenue in character appears to have rested upon the fact that the units there had already been set up. As we read the provisions of the Industrial Promotion Assistance [ IPA ] Scheme as framed by the State of West Bengal, the receipt of subsidies was clearly linked to a total investment exceeding INR 25,00,00,000/- being made and would have become payable on commencement of commercial production. It, therefore, appears to be clearly linked to the establishment of new units and capital expenditure which would be incurred in connection therewith. Insofar as the issue of AMP is concerned, since both sides seek an opportunity to address submissions in greater detail, let these appeals be re-notified on 16.05.2024. - HON'BLE MR. JUSTICE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of West Bengal for WBIDC plant and Government of Maharashtra for Paithon plant. The subsidy from the Government of West Bengal was received for setting up for a new project in West Bengal under the West Bengal incentive scheme 2000 and 2004 which was to promote the establishment of the industries in the state. The nature of subsidy has already been described above. The Assessing Officer has allowed the claim of subsidy from Government of Maharashtra and also the State Capital Investment Subsidy by the West Bengal Govt. as it was computed on 15% of fixed capital investment which has been treated as capital in nature and allowed the claim of assessee. However, AO has disallowed the claim of the assessee on the IPA subsidy received from Govern ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (supra) held that subsidiary scheme of the State Government to encourage development of multiple theatre complexes is capital in nature and not revenue's receipts there also subsidy was in the form of exemption from payment of entertainment due for the period of three years. Merely because here in this case the quantification of subsidy was based on reimbursement of sales tax, it does not meant that it is a revenue receipt. This view now is well supported by the various decisions as noted above that character of subsidy in the hands of the assessee is the determinative factor having regard to the purpose for which subsidy was given. Accordingly, we hold that the subsidy received by the assessee from the subsidy received under the West B ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
