https://www.taxtmi.com/caselaws?id=448516 Calcutta HC ruled against the assessee who claimed tax exemption under Section 4A of UP Trade Tax Act, 1948 as capital receipt/subsidy. Court held that exemption from tax liability means no tax component can be collected from purchasers or retained as subsidy. The entire sale price received constitutes revenue receipt, not capital receipt. ITAT erred in treating the tax component as capital receipt since it formed part of admitted sale price. Allowing such claims would result in unauthorized tax collection and retention, which is statutorily impermissible. en-us Mon, 18 Dec 2023 00:00:00 +0530 Wed, 18 Feb 2026 16:31:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=448516 Calcutta HC ruled against the assessee who claimed tax exemption under Section 4A of UP Trade Tax Act, 1948 as capital receipt/subsidy. Court held that exemption from tax liability means no tax component can be collected from purchasers or retained as subsidy. The entire sale price received constitutes revenue receipt, not capital receipt. ITAT erred in treating the tax component as capital receipt since it formed part of admitted sale price. Allowing such claims would result in unauthorized tax collection and retention, which is statutorily impermissible. Case-Laws Income Tax Mon, 18 Dec 2023 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=448516