https://www.taxtmi.com/caselaws?id=190907 A sales tax remission under the West Bengal Incentive Scheme, 1999 was treated as a capital receipt because the governing test is the purpose of the subsidy. Where the incentive is linked to fixed capital investment, expansion of an existing unit, addition to fixed assets, or repayment of expansion loans, it is on capital account. The remission here was tied to those objectives and was used for expansion and loan repayment, so it was not taxable as revenue receipt. Section 43B was inapplicable because no sales tax amount had been claimed as a deductible expense in the profit and loss account. en-us Fri, 07 Jan 2011 00:00:00 +0530 Mon, 21 Aug 2023 17:13:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=190907 A sales tax remission under the West Bengal Incentive Scheme, 1999 was treated as a capital receipt because the governing test is the purpose of the subsidy. Where the incentive is linked to fixed capital investment, expansion of an existing unit, addition to fixed assets, or repayment of expansion loans, it is on capital account. The remission here was tied to those objectives and was used for expansion and loan repayment, so it was not taxable as revenue receipt. Section 43B was inapplicable because no sales tax amount had been claimed as a deductible expense in the profit and loss account. Case-Laws Income Tax Fri, 07 Jan 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=190907