Sunbeam Auto Pvt. Ltd. v. CIT (2018) 402 ITR 309 / ( 2020) 116 763 (Delhi) (HC)

S. 4 :Charge of income-tax – Capital or revenue- Sales tax subsidy is a capital receipt. [ S. 264 ]

Allowing the petition against order u/s 264 the Court held that ; the sales tax subsidy received by the assessee was to be treated as a capital receipt and was not to be added to its income. The orders of the Commissioner and the Assessing Officer, treating the sales-tax subsidy as revenue receipt, were to be set aside.( AY. 2007 -08 to 2010-11)