https://www.taxtmi.com/caselaws?id=772277 ITAT Delhi ruled that sales tax subsidies received from Union Territory of Dadra & Nagar Haveli constitute revenue receipts, not capital receipts. The tribunal determined that subsidies granted annually from 2002-2016 after production commencement were intended to assist ongoing business operations rather than asset creation or unit establishment. Since the scheme imposed no obligation to use incentives for specific capital purposes and subsidies were provided post-project completion, they were properly treated as taxable income. The assessee's appeals were dismissed. en-us Wed, 21 May 2025 00:00:00 +0530 Tue, 03 Jun 2025 12:09:50 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=772277 ITAT Delhi ruled that sales tax subsidies received from Union Territory of Dadra & Nagar Haveli constitute revenue receipts, not capital receipts. The tribunal determined that subsidies granted annually from 2002-2016 after production commencement were intended to assist ongoing business operations rather than asset creation or unit establishment. Since the scheme imposed no obligation to use incentives for specific capital purposes and subsidies were provided post-project completion, they were properly treated as taxable income. The assessee's appeals were dismissed. Case-Laws Income Tax Wed, 21 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=772277