https://www.taxtmi.com/caselaws?id=770432 ITAT Delhi held that government incentives including excise duty refund, sales tax/VAT input tax refund and sales tax remission received under economic development scheme for Kutch District constituted capital receipts not chargeable to tax. The tribunal followed its own precedent and noted the scheme's purpose was attracting investment and generating employment. Regarding Section 14A disallowance, ITAT restricted it to 1% of dividend income and required AO to record objective satisfaction before applying Rule 8D computation. For TDS matters, tribunal ruled Section 40(a)(ia) cannot apply to short deduction of tax at source, deciding in favor of assessee. en-us Wed, 07 May 2025 00:00:00 +0530 Mon, 23 Feb 2026 13:24:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=770432 ITAT Delhi held that government incentives including excise duty refund, sales tax/VAT input tax refund and sales tax remission received under economic development scheme for Kutch District constituted capital receipts not chargeable to tax. The tribunal followed its own precedent and noted the scheme's purpose was attracting investment and generating employment. Regarding Section 14A disallowance, ITAT restricted it to 1% of dividend income and required AO to record objective satisfaction before applying Rule 8D computation. For TDS matters, tribunal ruled Section 40(a)(ia) cannot apply to short deduction of tax at source, deciding in favor of assessee. Case-Laws Income Tax Wed, 07 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=770432