Suppose a Company has Purchased A Machinery worth Rs 10 crore 3 years back.
It has been Depriciating the same regularly with same method.
Now After 3 years due to Complaints by various Purchasers, the selling Company is Giving a Refund of Rs 30 lakh on the same machine due to Certain Defects in the same.
What will be the Tax treatment of the Refund amount of Rs 30 lakh in the books of company which has received it ? Will it be treated as Capital Receipt or Revenue Receipt ? & relevant Judgements if any in respect of the same & also it will fall under which Section of IT act , 1961 ?
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