The Assessing Officer treated the Government subsidy received by the assessee as a revenue receipt. The Tribunal, following its decision in the assessee’s own case for the earlier assessment year, held that the subsidy was a Government grant of a capital nature and therefore constituted a capital receipt not chargeable to tax as revenue income. (AY. 2011-12)
Capgemini India P. Ltd. v. Dy. CIT (2025) 130 ITR 431 (Mum.)(Trib.)
S. 4 : Charge of income-tax-Capital receipt-Government subsidy-Subsidy received for capital purposes is not taxable as a revenue receipt. [S.28(i)]
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