Allowing the appeal of the assessee the Tribunal held that , Sales tax subsidy granted by the Government for purpose of setting up or expansion of Mills would be capital receipt and the said receipts cannot be added to book profit .Amended provisions treating subsidy or grant as income u/s 2(24)(xvii) are prospective in nature and not applicable to assessment year prior to AY.2016-17) ( ITA Nos. 979/1001/17 /Hyd/ 17 dt. 20-04- 2018( AY. 2006 -07 , 2013-14 )
Sanghai Industries Ltd v.ACIT ( Hyd ) (Trib) www.itat.nec.
S. 4 : Charge of income-tax -Capital or revenue-Book profit – Sales tax subsidy granted by the Government for purpose of setting up or expansion of Mills would be capital receipt- Amended provisions treating subsidy or grant as income u/s 2(24)(xvii) are prospective in nature and not applicable to assessment year prior to AY.2016-17) [ S.2(24)(xvii),28 (i),115JB ]