https://www.taxtmi.com/highlights?id=95728 Subsidy received under the State Mega Project incentive scheme was held revenue in nature because it was linked to electricity duty/stamp duty exemptions and VAT/CST-linked promotion subsidy, not to acquisition of any specific fixed asset; Explanation 10 to section 43(1) was inapplicable and the receipt was taxable as income under section 2(24)(xviii), rejecting the claim of capital receipt/exemption. CPC's prima facie adjustment under section 143(1)(a)(ii) adding the subsidy was upheld since the return contained an apparent mismatch and incomplete exempt-income disclosure, warranting correction, and the first appellate order was reversed. Disallowance of delayed employees' PF/ESIC was remanded to examine the "advance deposit" plea. Alleged understatement of duty drawback was remanded for reconciliation. - ITAT en-us Mon, 05 Jan 2026 08:04:08 +0530 Mon, 05 Jan 2026 08:04:10 +0530 TaxTMI RSS Generator https://www.taxtmi.com/highlights?id=95728 Subsidy received under the State Mega Project incentive scheme was held revenue in nature because it was linked to electricity duty/stamp duty exemptions and VAT/CST-linked promotion subsidy, not to acquisition of any specific fixed asset; Explanation 10 to section 43(1) was inapplicable and the receipt was taxable as income under section 2(24)(xviii), rejecting the claim of capital receipt/exemption. CPC's prima facie adjustment under section 143(1)(a)(ii) adding the subsidy was upheld since the return contained an apparent mismatch and incomplete exempt-income disclosure, warranting correction, and the first appellate order was reversed. Disallowance of delayed employees' PF/ESIC was remanded to examine the "advance deposit" plea. Alleged understatement of duty drawback was remanded for reconciliation. - ITAT Highlights Income Tax Mon, 05 Jan 2026 08:04:08 +0530 https://www.taxtmi.com/highlights?id=95728