The assessee had received grant\/financial assistance from the Government of India. \u00a0The assessee had recorded the same as capital receipt and not offered to tax which was accepted by the Department from AY 2006-07 till AY 2013-14. \u00a0However, for AY 2014-15 the Department in the assessment has considered the receipt as revenue in nature and made an addition on account of the same. \u00a0The Tribunal after going through the facts and circumstances of the case and relying on the decision of Apex Court in case of\u00a0 CIT v. \u00a0Ponni Sugars & Chemicals Ltd. \u00a0(2008) 306 ITR 362 (SC) and in the case of CIT v. \u00a0Chaphalkar Brothers Pune (2018) 400 ITR 279\u00a0 (SC)\u00a0 held that grants given for specific purpose to be applied for capital outlays is capital in nature and not chargeable to tax. \u00a0Further the Tribunal, placing reliance on the decision of Radhasaomi Satsang v.\u00a0 CIT (1992) 193 ITR 321) (SC) and\u00a0 CIT v.\u00a0 Neo Poly Packs (P) Ltd (2000\u00a0 ) 245 ITR 492 (Delhi)\u00a0 (HC) noted that the Apex Court has laid down the principle of rule of consistency. \u00a0Thereby in absence of any material change justifying the Revenue to take different stand view, the same view as accepted by earlier years should continue to prevail till there is some material change in facts. (AY. 2014-15)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 4: Charge of income-tax-Capital or revenue-Subsidy received from Government is a capital receipt not chargeable to tax-Rule of consistency to be followed.<\/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":[1],"tags":[],"class_list":["post-8489","post","type-post","status-publish","format-standard","hentry","category-digest"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-2cV","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/8489","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=8489"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/8489\/revisions"}],"predecessor-version":[{"id":8490,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/8489\/revisions\/8490"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=8489"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=8489"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=8489"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}