Appellant allowed to claim Notification No.20/2007-CE refunds despite inadvertent filing under Notification No.56/2003-CE as revenue did not dispute e...
ITAT held that grants/contributions received from the State are capital in nature as promoter's contributions under AS-12 and not taxable income, because the taxpayer is a wholly-owned State undertaking executing BOT projects as contractor and does not own the projects; consequent reversal of depreciation to capital reserve is proper. Amounts accrued but not received from the State likewise are capital receipts and not taxable on accrual. Further, additions by the AO relating to toll receipts (Mumbai-Pune NH-4 and Thane Ghodbandar Road) were deleted because the AO ignored allowable estimated maintenance and improvement costs; identical additions for both roads were disallowed and the AO was directed to delete the impugned additions.
ITAT held that grants/contributions received from the State are capital in nature as promoter's contributions under AS-12 and not taxable income, because the taxpayer is a wholly-owned State undertaking executing BOT projects as contractor and does not own the projects; consequent reversal of depreciation to capital reserve is proper. Amounts accrued but not received from the State likewise are capital receipts and not taxable on accrual. Further, additions by the AO relating to toll receipts (Mumbai-Pune NH-4 and Thane Ghodbandar Road) were deleted because the AO ignored allowable estimated maintenance and improvement costs; identical additions for both roads were disallowed and the AO was directed to delete the impugned additions.
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