banner_ad

grant received from WBIDC

This query is : Resolved 
Profile Image

Profile Image

(Querist)
10 October 2008 MY CLIENT HAS RECEIVED A GRANT AGAINST INSTALLATION OF NEW MACHINERY.WHEATHER IT IS TREATED AS REVENUE RECEIPTS?
I HAVE HEARD THAT AS PER RECENT S.COURT DECISION WBIDC GRANT WILL BE TREATED AS REVENUE RECEIPTS AND IT WILL NOT BE CAPITALISED. IF YES PLEASE GIVE ME THE ACTUAL DECISION GIVEN BY S.COURT.
Profile Image

Bhaskaran Chackrapani Warrier

Profile Image

Bhaskaran Chackrapani Warrier (Expert)
10 October 2008 In Sahney steel and press works ltd vs CIT (1997) 228 ITR 253(SC) grant received after commencement of production is decided as revenue receipt because the grant was actually reimbursement of sales tax, water charges,electricity charges etc based on a subsidy scheme of Andhra pradesh Government.According to me the said decision has no global application since subsidy scheme of all states are not uniform.In other words if it is a capital investment subsidy it is capital receipt vide CIT vs P J Chemicals ltd (1994) 210 ITR 830 (SC)
Profile Image

CA. O.P. Agarwalla

Profile Image

CA. O.P. Agarwalla (Expert)
11 October 2008 I agree. The said grant is a Capital receipt.
Profile Image

Bhaskaran Chackrapani Warrier

Profile Image

Bhaskaran Chackrapani Warrier (Expert)
11 October 2008 Latest decision in this regard is CIT vs.PONNI SUGARS & CHEMICALS LTD & ORS (2008)219 CTR 105 (SC).
Profile Image

CA. Gurdeep Singh Chawla

Profile Image

CA. Gurdeep Singh Chawla (Expert)
11 October 2008 Capital Receipt
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now


CCI Pro
Join CAclubindia WhatsApp Finance Community & stay updated with the latest TAX news, compliance alerts and important updates all in one place!


Similar Resolved Queries


loading


Unanswered Queries


banner

Trending Online Classes

view all classess

CCI Pro
Meet our CAclubindia PRO Members
Subscribe Now

Follow us
add to google news



Answer Query



Quick Links



Browse by Category




Latest Job Openings

View all
Company
22 May 2026
Audit assistant

Displayandbeyond

Mumbai

CA

View Details
Company
26 May 2026
Education Content Creator

Adyayam Education LLP

Bengaluru

CA Foundation

View Details
Company
Featured 27 May 2026
Lead Conversion Executive / Sales Closing Executive

SMJ global advisors pvt ltd

New Delhi

B.Com

View Details
Company
24 May 2026
Accounts & Tax Executive

PARAS KHURANA AND CO

New Delhi

B.Com

View Details
Company
Featured 28 May 2026
SEMI QUALIFIED/ CA DROPOUTS/ ARTICLES

T R SOOD & CO

New Delhi

CA Inter

View Details
Company
29 May 2026
Company Secretary - Part time

Shaswat initial support private limited

Ahmedabad

CS

View Details
Company
ARTICLESHIP 23 May 2026
Article Assistants

Acupro Consulting

Gurgaon

CA Inter

View Details
Company
ARTICLESHIP 31 May 2026
Article Assistant

KPRS And Associates

New Delhi

CA Inter

View Details