https://www.taxtmi.com/caselaws?id=787234 Sales tax collected and retained by an industrial undertaking under a state capital investment incentive policy constitutes a capital receipt where the scheme permits retention up to the amount of capital investment for a fixed period. The incentive is linked to capital investment rather than treated as trading revenue. Earlier decisions on a materially identical scheme classified such retained sales tax as non-taxable capital receipts, and that position remained undisturbed after Revenue's challenges failed. Accordingly, retained sales tax under the comparable policy is not includible as taxable revenue for the relevant assessment year. en-us Tue, 24 Feb 2026 00:00:00 +0530 Sat, 28 Feb 2026 08:41:53 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=787234 Sales tax collected and retained by an industrial undertaking under a state capital investment incentive policy constitutes a capital receipt where the scheme permits retention up to the amount of capital investment for a fixed period. The incentive is linked to capital investment rather than treated as trading revenue. Earlier decisions on a materially identical scheme classified such retained sales tax as non-taxable capital receipts, and that position remained undisturbed after Revenue's challenges failed. Accordingly, retained sales tax under the comparable policy is not includible as taxable revenue for the relevant assessment year. Case-Laws Income Tax Tue, 24 Feb 2026 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=787234