The Pune bench of Income Tax Appellate Tribunal (ITAT) recently held that Incentive under Rajasthan investment promotion scheme 2010 is capital receipt therefore it was not taxable.
The aforesaid order was issued for assessee Jain Irrigation Systems Ltd. Who filed the appeal against the order of Commissioner of Income Tax (Appeal).
Percy Pardiwala counsel for the assessee contended that the Assessing officer and Dispute resolution panel without analyzing the facts of the case erred in making an addition of Rs. 10,70,209/- being incentive receivable as per Rajasthan Investment Promotion Scheme- 2010 .
B Koteswara Rao counsel for the assessee upheld the decision of the Assessing officer and Dispute Resolution panel making the addition of Rs 10,70,209/- being incentive receivable as per Rajasthan Investment Promotion Scheme -2010.
After considering the contentions of the both parties The Division bench of ITAT Pune comprising Dipak P.Ripote,, Accountant Member, and S.S.Godara (Judicial Member), allowed the appeal filed by the assessee and observed the ground relied with the decision of PCIT Vs. Nitin Spinners Ltd.
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