Dismissing the appeal of the revenue the Court held that, sales tax waiver benefit are in the nature of capital receipts. Followed Indian Petrochemicals Corporation Ltd ( 2016) 74 taxmann.com 163 (Guj) (HC) and CIT v. Nirma Ltd ( 2017) 397 ITR 49 (Guj)(HC)
CIT v. Indian Petrochemicals Corpn. Ltd. (2019) 261 Taxman 251 (Bom.)(HC)
S. 4 : Charge of income-tax – Sales tax waiver benefits are in nature of capital receipts.