CIT v. Ponni Sugars & Chemicals Ltd.

306 ITR 392Supreme Court of India2008#107 most cited

What is CIT v. Ponni Sugars & Chemicals Ltd. authority for?

The "Purpose Test" determines whether an incentive or subsidy is a capital or revenue receipt for income tax purposes. If the incentive's purpose is to enable an assessee to set up a new industry or make investments in capital assets, it is a capital receipt and not taxable.

577

judgments rely on this decision, according to BharatTax’s citation analysis of 367,181 Indian tax judgments — from 2007 to 2026.

Also referred to as

CIT v. Ponni Sugars & Chemicals Ltd. · 306 ITR 392 · capital receipt vs revenue receipt · subsidy taxability · incentive scheme purpose test · sales tax incentive capital receipt · excise duty exemption capital receipt · section 2(24)(xviii) · section 43(1) · investment incentive taxability · purpose test subsidy · nature of receipt

Also reported as

174 Taxmann 87219 CTR 105

Sections most often in play

Section 115JBSection 143(3)Section 14ASection 2(24)(xviii)Section 37(1)Section 80P(2)(d)Section 80P(4)Section 43(1)
Read the full judgment

Issues it is cited on

section 2(24)(xviii)section 43(1)initial assessment yearsection 80hhcsection 80hhsection 2(24)additional depreciationbook profitswritten down valueblock of assetssection 32(1)liable to tax

Judgments citing CIT v. Ponni Sugars & Chemicals Ltd.

ACIT, Central Circle, Moradabad vs. Genus Electrotech Ltd., Ahamedabad

ITA 9514/DEL/2019[2008-09]Status: DisposedITAT Delhi04 Aug 2022AY 2008-09
For Appellant: Shri Mayank Patawari, CAFor Respondent: Md. Gayasuddin Ansari, Senior DR
Section 115JSection 143Section 143(3)Section 154Section 250

…13/- made for the purpose of income computation u/s 115JB in the circumstances when these receipts are of revenue character when examined from the angle of purpose test as observed by Hon'ble Supreme Court in the case of CIT Vs. Ponni Sugars & Chemicals Ltd. [306 ITR 392 (SC)]. 4. On facts and circumstances of the case and in law, Ld. CIT(A) erred in deleting the addition of Rs.4,50,00,000/- on account of Debenture redemption Reserve in circumstances when the said amount is an appropriation towards reserve and therefore the same is to be added to the income of the assessee for computation of income for the purpo…

ACIT, Central Circle, Moradabad vs. Genus Electrotech Ltd., Ahamedabad

ITA 9513/DEL/2019[2007-08]Status: DisposedITAT Delhi04 Aug 2022AY 2007-08
For Appellant: Shri Mayank Patawari, CAFor Respondent: Md. Gayasuddin Ansari, Senior DR
Section 115JSection 143Section 143(3)Section 154Section 250

…13/- made for the purpose of income computation u/s 115JB in the circumstances when these receipts are of revenue character when examined from the angle of purpose test as observed by Hon'ble Supreme Court in the case of CIT Vs. Ponni Sugars & Chemicals Ltd. [306 ITR 392 (SC)]. 4. On facts and circumstances of the case and in law, Ld. CIT(A) erred in deleting the addition of Rs.4,50,00,000/- on account of Debenture redemption Reserve in circumstances when the said amount is an appropriation towards reserve and therefore the same is to be added to the income of the assessee for computation of income for the purpo…

M/S. Genus Electrotech Ltd., Ahmedabad vs. The Dy.CIT, Circle-2(1)(1), Ahmedabad

ITA 2418/AHD/2017[2007-08]Status: DisposedITAT Delhi04 Aug 2022AY 2007-08
For Appellant: Shri Mayank Patawari, CAFor Respondent: Md. Gayasuddin Ansari, Senior DR
Section 115JSection 143Section 143(3)Section 154Section 250

…13/- made for the purpose of income computation u/s 115JB in the circumstances when these receipts are of revenue character when examined from the angle of purpose test as observed by Hon'ble Supreme Court in the case of CIT Vs. Ponni Sugars & Chemicals Ltd. [306 ITR 392 (SC)]. 4. On facts and circumstances of the case and in law, Ld. CIT(A) erred in deleting the addition of Rs.4,50,00,000/- on account of Debenture redemption Reserve in circumstances when the said amount is an appropriation towards reserve and therefore the same is to be added to the income of the assessee for computation of income for the purpo…

DCIT Circle- 1, Thane vs. M/S Everest Industries Ltd, Delhi

In the result, appeal of the Revenue is partly

ITA 554/MUM/2020[2010-11]Status: DisposedITAT Mumbai29 Jul 2022AY 2010-11

Bench: Shri B.R. Baskaran & Shri Anikesh Banerjee

For Appellant: Sh Chaitanya Joshi &For Respondent: Shri Amol Kirtane, CIT-DR
Section 143(3)Section 250(6)Section 32(1)(iia)Section 43B

…, the assessee availed Excise Duty Incentive amounting to Rs.15,67,00,636 and excluded the same in the Return of Income being capital receipt by relying on the Judgment of Hon’ble Supreme Court in the case of CIT vs. Ponni Sugars and Chemicals Ltd. (2008) 306 ITR 392 (SC). 25 ITA.No.7791/Mum./2019 & ITA.No.554/Mum./2020 Everest Industries Limited, Noida. U.P. 14.1. However, the Learned A.O. noted that the claim of the assessee for Excise Duty Incentive is similar to Sales Tax Incentive claimed as capital receipt and hence denied the claim of Excise Duty Incentive following the reasoning given in respect…

Everest Industrial Ltd., Noida vs. Dy CIT Circle-1, Thane

In the result, appeal of the Revenue is partly

ITA 7791/MUM/2019[2010-11]Status: DisposedITAT Mumbai29 Jul 2022AY 2010-11

Bench: Shri B.R. Baskaran & Shri Anikesh Banerjee

For Appellant: Sh Chaitanya Joshi &For Respondent: Shri Amol Kirtane, CIT-DR
Section 143(3)Section 250(6)Section 32(1)(iia)Section 43B

…, the assessee availed Excise Duty Incentive amounting to Rs.15,67,00,636 and excluded the same in the Return of Income being capital receipt by relying on the Judgment of Hon’ble Supreme Court in the case of CIT vs. Ponni Sugars and Chemicals Ltd. (2008) 306 ITR 392 (SC). 25 ITA.No.7791/Mum./2019 & ITA.No.554/Mum./2020 Everest Industries Limited, Noida. U.P. 14.1. However, the Learned A.O. noted that the claim of the assessee for Excise Duty Incentive is similar to Sales Tax Incentive claimed as capital receipt and hence denied the claim of Excise Duty Incentive following the reasoning given in respect…

Aurangabad Electricals Ltd, Pune vs. Deputy Commissioner of Income-Tax, Circle - 8, Pune

In the result, the appeal of assessee is partly allowed for statistical purposes and the appeal of Revenue is dismissed

ITA 225/PUN/2019[2015-16]Status: DisposedITAT Pune20 Jul 2022AY 2015-16

Bench: Shri Inturi Rama Rao & Shri S.S. Viswanethra Raviआयकर अपीऱ सं. / Ita No.199/Pun/2019 निर्धारण वषा / Assessment Year : 2015-16 The Dy. Commissioner Of Income Tax, Circle-8, Pune .......अऩीऱाथी / Appellant बिधम / V/S. M/S. Aurangabad Electricals Limited, B-7, Midc Chakan, Tal Khed, Pune – 410501 Pan: Aacca2867L ……प्रत्यथी / Respondent

For Appellant: Shri Sharad ShahFor Respondent: Shri Arvind Desai
Section 14A

…receipt but simultaneously laid down the ratio decidendi of applying the 'purpose test' for ascertaining the true nature of subsidy. The purpose test has been reiterated by the Hon'ble Supreme Court in CIT v. Ponni Sugars & Chemicals Ltd. [2008] 174 Taxman 87/306 ITR 392 by holding that the relevant consideration should be the purpose of subsidy and not its source or mode or payment. When we apply such a test on the facts and circumstances of the case, it demonstrably emerges that the purpose of subsidy is industrial growth; it is linked with the setting up of industrial units; and the amount of subsidy is linked…

Deputy Commissioner of Income-Tax, Circle - 8, Pune vs. M/S. Aurangabad Electricals Limited, Pune

In the result, the appeal of assessee is partly allowed for statistical purposes and the appeal of Revenue is dismissed

ITA 199/PUN/2019[2015-16]Status: DisposedITAT Pune20 Jul 2022AY 2015-16

Bench: Shri Inturi Rama Rao & Shri S.S. Viswanethra Raviआयकर अपीऱ सं. / Ita No.199/Pun/2019 निर्धारण वषा / Assessment Year : 2015-16 The Dy. Commissioner Of Income Tax, Circle-8, Pune .......अऩीऱाथी / Appellant बिधम / V/S. M/S. Aurangabad Electricals Limited, B-7, Midc Chakan, Tal Khed, Pune – 410501 Pan: Aacca2867L ……प्रत्यथी / Respondent

For Appellant: Shri Sharad ShahFor Respondent: Shri Arvind Desai
Section 14A

…receipt but simultaneously laid down the ratio decidendi of applying the 'purpose test' for ascertaining the true nature of subsidy. The purpose test has been reiterated by the Hon'ble Supreme Court in CIT v. Ponni Sugars & Chemicals Ltd. [2008] 174 Taxman 87/306 ITR 392 by holding that the relevant consideration should be the purpose of subsidy and not its source or mode or payment. When we apply such a test on the facts and circumstances of the case, it demonstrably emerges that the purpose of subsidy is industrial growth; it is linked with the setting up of industrial units; and the amount of subsidy is linked…

DCIT, New Delhi vs. M/S Insecticides (India) Ltd., Delhi

In the result, the appeal of the Revenue stands allowed for statistical purposes

ITA 1296/DEL/2016[2012-13]Status: DisposedITAT Delhi13 Jul 2022AY 2012-13
For Appellant: Shri Devesh Parekh, CAFor Respondent: Shri Abhishek Kumar, Sr. DR
Section 143(3)Section 80ISection 8O

…signed keeping in mind the public interest. The appellant has relied on various case laws in which the subsidies claimed by such units have been treated as capital receipts. They have cited following decisions:- > CIT vs. Ponni Sugars & Chemicals Ltd. (2008) 306 ITR 392 (SC); > Shree Balaji Alloys vs. CIT (2011) 333 ITR 335 (J&K); > Vinod Kumar Jain vs. ITO, Jammu Special Bench, Amritsar (ITAT); > CIT vs. Pruthvi Brokers & Shareholders Pvt. Ltd. (Bom. HC). In these grounds of appeal the appellant has claimed excise duty refund as capital receipts instead of the revenue receipts considered to be so in original…

Crystal Corp Protection Ltd., Delhi vs. ACIT, Circle- 5(2), New Delhi

The Appeal of the assessee is allowed

ITA 3930/DEL/2018[2013-14]Status: DisposedITAT Delhi08 Jul 2022AY 2013-14

Bench: Shri B. R. R. Kumar & Sh. Yogesh Kumar Us

…1 M/s Crystal Corp Protection Ltd. IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH: ‘B’ NEW DELHI BEFORE SHRI B. R. R. KUMAR, ACCOUNTANT MEMBER AND SH. YOGESH KUMAR US, JUDICIAL MEMBER I.T.A. No. 3930/DEL/2018 (A.Y 2013-14) (THROUGH VIDEO CONFERENCING) Crystal Corp Protection Ltd. Vs ACIT B-95, Wazirpur, Industrial Area, Circle-5(2) Delhi- PIN: 110052 New Delhi (RESPONDENT) PAN No. AABCJ3574E (APPELLANT) Appellant by Sh. S. S. Nagar, CA Respondent by Sh. Lalit Kishore, Sr. DR Date of Hearing 25.05.2022 Date of Pronouncement 08.07.2022 ORDER PER YOGESH KUMAR US, JM This appeal is filed by the asses…

Tata Chemicals Ltd, Mumbai vs. DCIT 2(2), Mumbai

In the result, appeal by the Revenue is dismissed

ITA 2692/MUM/2012[2005-06]Status: DisposedITAT Mumbai06 Jul 2022AY 2005-06

Bench: Shri Pramod Kumar & Shri Sandeep Singh Karhail

For Appellant: Shri Nitesh Joshi a/wFor Respondent: Smt. Somogyan Pal, CIT DR
Section 115JSection 14ASection 250Section 80Section 80HSection 80M

…asset of the approved project. On reading of the scheme, it is apparent that it is formulated to extend incentive for promotion of industries in the state. 017. As held by Honourable Supreme court in CIT Madras Vs Ponni Sugar [2008] 174 Taxman 87 (SC)/[2008] 306 ITR 392 (SC)/[2008] it is the object for which the subsidy/assistance is given which determines the nature of the incentive subsidy. The form of the mechanism through which the subsidy is given is irrelevant. In the present case when once the object of subsidy is to industrialize state, it is capital receipt. All the judgments cited before us also lay do…

DCIT 2(2), Mumbai vs. Tata Chemicals Ltd, Mumbai

In the result, appeal by the Revenue is dismissed

ITA 2553/MUM/2012[2005-06]Status: DisposedITAT Mumbai06 Jul 2022AY 2005-06

Bench: Shri Pramod Kumar & Shri Sandeep Singh Karhail

For Appellant: Shri Nitesh Joshi a/wFor Respondent: Smt. Somogyan Pal, CIT DR
Section 115JSection 14ASection 250Section 80Section 80HSection 80M

…asset of the approved project. On reading of the scheme, it is apparent that it is formulated to extend incentive for promotion of industries in the state. 017. As held by Honourable Supreme court in CIT Madras Vs Ponni Sugar [2008] 174 Taxman 87 (SC)/[2008] 306 ITR 392 (SC)/[2008] it is the object for which the subsidy/assistance is given which determines the nature of the incentive subsidy. The form of the mechanism through which the subsidy is given is irrelevant. In the present case when once the object of subsidy is to industrialize state, it is capital receipt. All the judgments cited before us also lay do…

DCIT 2(2), Mumbai vs. Tata Chemicals Ltd, Mumbai

In the result, appeal by the Revenue is dismissed

ITA 2733/MUM/2011[2004-05]Status: DisposedITAT Mumbai06 Jul 2022AY 2004-05

Bench: Shri Pramod Kumar & Shri Sandeep Singh Karhail

For Appellant: Shri Nitesh Joshi a/wFor Respondent: Smt. Somogyan Pal, CIT DR
Section 115JSection 14ASection 250Section 80Section 80HSection 80M

…asset of the approved project. On reading of the scheme, it is apparent that it is formulated to extend incentive for promotion of industries in the state. 017. As held by Honourable Supreme court in CIT Madras Vs Ponni Sugar [2008] 174 Taxman 87 (SC)/[2008] 306 ITR 392 (SC)/[2008] it is the object for which the subsidy/assistance is given which determines the nature of the incentive subsidy. The form of the mechanism through which the subsidy is given is irrelevant. In the present case when once the object of subsidy is to industrialize state, it is capital receipt. All the judgments cited before us also lay do…

Tata Chemicals Ltd, Mumbai vs. DCIT 2(3), Mumbai

In the result, appeal by the Revenue is dismissed

ITA 2440/MUM/2011[2004-05]Status: DisposedITAT Mumbai06 Jul 2022AY 2004-05

Bench: Shri Pramod Kumar & Shri Sandeep Singh Karhail

For Appellant: Shri Nitesh Joshi a/wFor Respondent: Smt. Somogyan Pal, CIT DR
Section 115JSection 14ASection 250Section 80Section 80HSection 80M

…asset of the approved project. On reading of the scheme, it is apparent that it is formulated to extend incentive for promotion of industries in the state. 017. As held by Honourable Supreme court in CIT Madras Vs Ponni Sugar [2008] 174 Taxman 87 (SC)/[2008] 306 ITR 392 (SC)/[2008] it is the object for which the subsidy/assistance is given which determines the nature of the incentive subsidy. The form of the mechanism through which the subsidy is given is irrelevant. In the present case when once the object of subsidy is to industrialize state, it is capital receipt. All the judgments cited before us also lay do…

Narayan Industires, New Delhi vs. ACIT, Circle- 60(1), New Delhi

In the result, the appeal of the assessee is partly allowed

ITA 6153/DEL/2017[2014-15]Status: DisposedITAT Delhi30 Jun 2022AY 2014-15

Bench: Sh. Aakash Deep Jaindr. B. R. R. Kumar

For Appellant: Sh. Rohit Jain, Adv. &For Respondent: Sh. N. K. Bansal, Sr. DR
Section 253

…ode / manner in which the incentive is received/ disbursed. The law in this regard fairly well settled and reference may be- made to the following decisions: • Salmey Steel and Press Works vs. CIT: 228 ITR 253 (SC) • CIT vs. Ponni Sugar and Chemicals Limited. 306 ITR 392 (SC) • CIT vs. Chaphalkar Brothers: 400 ITR 279 (SC) The purpose for which the incentives have been given, it is submitted, can be gauged from the objects and reasons behind introduction of the Policy. If the purpose of the incentive was to enable the assessee to run the business more profitably, then, the receipt is on revenue account. If the ob…

DCIT Cent, Cir-2(2), Mumbai vs. M/S. Vinati Organics Ltd, Mumbai

In the result, the appeal filed by the revenue is partly allowed and the assessee appeal is allowed for statistical purpose

ITA 1799/MUM/2021[2013-14]Status: DisposedITAT Mumbai22 Jun 2022AY 2013-14

Bench: Shri M. Balaganesh () & Shri Pavan Kumar Gadale () Assessment Year: 2013-14

For Appellant: Mr. Sidhharth Kothari, ARFor Respondent: Mr. S.N. Kabra, DR
Section 143(2)Section 143(3)Section 14ASection 195Section 32Section 4

…mployment generation by the company connected to the export of goods and mercantile. It is linked with capital in nature. The CIT(A) has placed reliance upon the decision of the Hon’ble Supreme Court in the case of CIT Vs. Ponni Sugars & Chemicals Ltd. (2008) 306 ITR 392 (SC), Eastman Exports Global Clothing Pvt. Ltd. in ITA. No.47/MDS/2016 dated 17.05.2016 and Sutlej Textiles & Industries Ltd. (ITA. No.5142/Del/2013) and M/s. Gloster Jute Mills Ltd. Vs. Addl. CIT in ITA.No.687/Kol/2010. These issues have duly been examined and discussed by CIT(A) in his order. The copy of scheme has also been filed by ld. Repres…

ACIT, Circle - Tinsukia, Tinsukia vs. M/S. Greenply Industries Ltd., Tinsukia

In the result, the appeal of the assessee for A

ITA 359/GTY/2019[2014-15]Status: DisposedITAT Guwahati21 Jun 2022AY 2014-15

Bench: Shri A.T. Varkey & Shri Manish Borad

Section 115JSection 143(2)Section 80ISection 92C

…it was claimed that the excise duty and sales tax exemption are capital receipt and to be excluded in computation of income. Reliance was further placed on the judgment of the Hon’ble Apex Court in the case of CIT –vs.- Ponni Sugars & Chemicals Limited (2008) 306 ITR 392 (SC), Sahney Steel & Press Works Ltd. –vs.- CIT (1997) 228 ITR 253 (SC), judgment of the Hon’ble Jammu & Kashmir High Court in the case of Shree Balaji Alloys & ors –vs.- CIT (2011) 51 DTR 217 (J&K), judgment of the Hon’ble Jurisdictional High Court in the case of PCIT –vs.- Ankit Metals & Power Ltd. (2019) ITA 155 of 2018 (Cal.) and in the case…

Greenply Industries Limited, Tinsukia vs. Assistant Commissioner of Income Tax, Circle-Tinsukia, Tinsukia

In the result, the appeal of the assessee for A

ITA 232/GTY/2019[2014-15]Status: DisposedITAT Guwahati21 Jun 2022AY 2014-15

Bench: Shri A.T. Varkey & Shri Manish Borad

Section 115JSection 143(2)Section 80ISection 92C

…it was claimed that the excise duty and sales tax exemption are capital receipt and to be excluded in computation of income. Reliance was further placed on the judgment of the Hon’ble Apex Court in the case of CIT –vs.- Ponni Sugars & Chemicals Limited (2008) 306 ITR 392 (SC), Sahney Steel & Press Works Ltd. –vs.- CIT (1997) 228 ITR 253 (SC), judgment of the Hon’ble Jammu & Kashmir High Court in the case of Shree Balaji Alloys & ors –vs.- CIT (2011) 51 DTR 217 (J&K), judgment of the Hon’ble Jurisdictional High Court in the case of PCIT –vs.- Ankit Metals & Power Ltd. (2019) ITA 155 of 2018 (Cal.) and in the case…

Deputy Commissioner of Income-Tax, Circle - 1, Nashik vs. Haldex India Pvt.Ltd, Nashik

In the result, the appeal filed by the Revenue stands dismissed

ITA 852/PUN/2019[2014-15]Status: DisposedITAT Pune19 May 2022AY 2014-15

Bench: Shri Inturi Rama Rao & Shri S. S. Viswanethra Raviआयकर अपील सं. / Ita No.852/Pun/2019 िनधा"रण वष" / Assessment Year: 2014-15 Dcit, Circle-1, Nashik Vs. Haldex India Pvt. Ltd., B-71, Midc, Ambad, Nashik- 422010. Pan : Aabch9044B Appellant Respondent Revenue By : Shri S. P. Walimbe Assessee By : Shri R. D. Onkar & Shri Viksit Bhargava Date Of Hearing : 18.05.2022 Date Of Pronouncement : 19.05.2022 आदेश / Order Per Inturi Rama Rao, Am: This Is An Appeal Filed By The Revenue Directed Against The Order Of Ld. Commissioner Of Income Tax (Appeals)- 1, Nashik Dated 01.03.2019 For The Assessment Year 2014-15. 2. The Revenue Raised The Following Grounds Of Appeal :- “01. Whether On The Facts & In The Circumstances Of The Case, The Ld. Cit(A)-1, Nashik Is Justified In Deleting The Addition Of Rs.4,58,41,000/- Made U/S 28(Iv) Of The Act On Account Of Octroi Refund Treating It Revenue In Nature. 02. The Order Of The Cit(A) May Be Vacated & That Of The Assessing Officer May Be Restored. 03. The Assessee Craves Leave To Add, Amend, Alter Or Delete Any Ground Of Appeal.”

For Appellant: Shri R. D. Onkar &For Respondent: Shri S. P. Walimbe
Section 143(3)Section 28

…capital in nature as the subsidy was granted as incentives to encourage the dispersal of Industries to the less 3 developed area of the State placing reliance on the decision of the Hon’ble Supreme Court in the case of CIT vs. Ponni Sugars & Chemicals Ltd., 306 ITR 392 (SC). Further, the ld. CIT(A) held that the provisions of section 28(iv) have no application to the monetary benefits received by the respondent-assessee placing reliance on the following decisions :- (i) CIT vs. Indokem Ltd., 132 ITR 125 (Bombay High Court). (ii) CIT vs. Alchemic Pvt. Ltd., 130 ITR 168 (Gujarat High Court). (iii) Ravinder Singh…

Assistant Commissioner of Income-Tax, Circle - 6, Pune vs. M/S. Shriniwas Engineering Auto, Pune

In the result, the appeal of the Revenue is dismissed

ITA 120/PUN/2018[2013-14]Status: DisposedITAT Pune11 May 2022AY 2013-14

Bench: Shri R.S. Syal & Shri Partha Sarathi Chaudhuryassessment Year : 2013-14 The Asstt. Cit Cir. 6, Pune. Appellant Vs. M/S. Shriniwas Engineering Auto C-10 Abhimanshree Society, Baner Road, Pune-411008 Pan : Aajcs 8944F Respondent Appellant By : Shri Hari Krishan Respondent By : Shri R.G. Gawli Date Of Hearing : 09-05-2022 Date Of Pronouncement : 11-05-2022 Order Per Partha Sarathi Chaudhury, Jm

For Appellant: Shri Hari KrishanFor Respondent: Shri R.G. Gawli
Section 32Section 43(1)

…a to generate employment. In our opinion, the subsidy is clearly on capital account. In that view of the matter, question (D) as framed, would also not arise. " 11. Similarly, Hon'ble Supreme Court in the case of CIT(A) v. Ponni sugars & Chemicals Ltd. (2008) 306 ITR 392 (SC) considering whether under a subsidy scheme, assessee a sugar mill, was obliged to utilized subsidy only for repayment of term loans undertaken by it for setting up new unit/ expansion of existing business, receipt of subsidy was held to be capital in nature. Hon'ble Supreme Court held that the character of the receipt in the hands of the ass…

Joint CIT (OSD) Cent Cir. 1(4), Mumbai vs. Grasim Industries Ltd., Mumbai

In the result, all the appeals of the Revenue are dismissed

ITA 2155/MUM/2016[1996-97]Status: DisposedITAT Mumbai29 Apr 2022AY 1996-97
Section 143(3)

…placed. The ld. CIT(A) after acknowledging that the assessee has filed all the incentive schemes including notifications of the state governments, relied upon the decision of Hon‟ble Supreme Court in the case of CIT v. Ponni Sugars & Chemicals Ltd reported in 306 ITR 392 (SC) as well as the decision of Special Bench of Mumbai Tribunal in the case of Reliance Industries Ltd reported in 88 ITD 273 held that sales tax incentive/subsidy is a capital receipt. Aggrieved by this, the revenue is in appeals before us. 4. The ld. Special Counsel for the Revenue drew our attention to the eight additional grounds raised by…