SHRINIWAS ENGINEERING AUTO COMPONENTS PVT. LTD,PUNE vs. NATIONAL FACELESS APPEAL CENTRE, PUNE

ITA 156/PUN/2025Status: DisposedITAT Pune22 December 2025AY 2018-19Bench: DR. MANISH BORAD (Accountant Member), SHRI VINAY BHAMORE (Judicial Member)1 pages
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What did the Tribunal hold?

The Tribunal held that the subsidies received were not directly or indirectly relatable to fixed assets, thus Explanation 10 to Section 43(1) was not applicable. The subsidies were to be treated as income under Section 2(24)(xviii) of the Act. The Tribunal also found that adjustments made by CPC under Section 143(1)(a)(ii) for incorrect claims in the ITR were justified.

What were the facts?

The assessee company received subsidies from the Maharashtra Government under the Package Scheme of Incentives (PSI) for its mega projects. The Assessing Officer treated these subsidies as revenue receipts and taxable, while the assessee claimed them as capital receipts and sought to reduce the cost of assets. Disallowances were also made for delayed deposit of employee contributions to PF/ESI.

What were the issues?

Whether government subsidies received under an incentive scheme are taxable as revenue receipts, and whether adjustments made by CPC for incorrect claims in the ITR are valid.

Which sections of the Income-tax Act were involved?

Section 43(1),Section 143(1)(a)(ii),Section 36(1)(va)

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Cases cited in this judgment(20)Show list

Detected automatically from the text. Citations are also linked where they appear in the judgment. The count shows how many other judgments on BharatTax rely on the same authority.

IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCHES “B”, PUNE

BEFORE DR.MANISH BORAD, ACCOUNTANT MEMBER AND SHRI VINAY BHAMORE, JUDICIAL MEMBER आयकर अपील सं. / ITA Nos.154 to 156/PUN/2025 Assessment Years : 2016-17 to 2018-19

Shriniwas Engineering Auto Vs. ACIT, Circle-6, Components Pvt. Ltd., Pune/ Office No.5, Mansara Apartments, ITO, Ward-6(1), Near LIC Building, Pune/ Shivajinagar, Pune 411016 NFAC, Delhi Maharashtra PAN : AAJCS8944F Appellant Respondent

आयकर अपील सं. / ITA Nos.1843, 1844/PUN/2024 and Assessment Years : 2018-19, 2019-20 and 2020-21

ACIT, Circle-5, Vs. Shriniwas Engineering Auto Pune Components Pvt. Ltd., Office No.5, Mansara Apartments, Near LIC Building, Shivajinagar, Pune 411016 Maharashtra PAN : AAJCS8944F Appellant Respondent

आयकर अपील सं. / ITA Nos.1423 and 157/PUN/2025 Assessment Years : 2019-20 and 2020-21

Shriniwas Engineering Auto Vs. ACIT, Circle-6, Components Pvt. Ltd., Pune/ Office No.5, Mansara Apartments, ITO, Ward-6(1), Near LIC Building, Pune/ Shivajinagar, Pune 411016 NFAC, Delhi Maharashtra PAN : AAJCS8944F Appellant Respondent

Shriniwas Engineering Auto Components Pvt. Ltd. A.Ys. 2016-17 to 2020-21

: Appellant by Shri Hari Krishan Re

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