The assessee has shown the subsidy as capital receipt in the return of Income . The Assessing Officer accepted the claim of the assessee\u00a0 without examining the subsidy scheme. Commissioner passed the revision order after examining \u00a0the \u00a0\u00a0scheme and the order was set aside for \u00a0re adjudication . \u00a0\u00a0\u00a0On appeal the Tribunal quashed the order of the Commissioner \u00a0on the ground that subsidy being capital in nature , revision was bad in law . On appeal the High Court\u00a0 PCIT v. L.G. Electronics India ( P) Ltd\u00a0 ( 2022 ) 134 taxmann.com 329 ( Delhi )(HC) , \u00a0\u00a0set aside the order of the Tribunal and held that the AO\u2019s decision accepting the assessee\u2019s returns on the point upon the assessee\u2019s explanation without recording any reason , given the complex nature of subsidy , was ex facie erroneous . \u00a0\u00a0The High Court directed the Assessing Officer to pass a fresh order upon his independent analysis as to whether the amount received by way of subsidy is capital or \u00a0revenue nature . On appeal SLP filed by the assessee was dismissed and the order of High Court is affirmed . ( AY. 2008 -09 )\u00a0<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 263 : Commissioner – Revision of orders prejudicial to revenue -capital or revenue receipt \u2013 Subsidy \u2013 Order of the Assessing Officer accepting the receipt as capital receipt was ex facie erroneous and potentially prejudice to revenue \u2013 Order of the High Court remanding the matter to the Assessing Officer was affirmed [ S. 4 ] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-25291","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-6zV","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/25291","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=25291"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/25291\/revisions"}],"predecessor-version":[{"id":25292,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/25291\/revisions\/25292"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=25291"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=25291"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=25291"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}