Capital subsidy liable to be excluded from computation of book profit

Sunrise Biscuit Co. Pvt. Ltd. Vs ITO (ITAT Gauhati) VAT subsidy received by the Assessee – subsidy received for substantial expansion of the undertaking – subsidy is capital in nature – capital subsidy liable to be excluded from the computation of books profit Facts- The assessee has received subsidy of INR 8,78,84,902/- from the Industrial Promotion Policy of Assam Government. Assessee contented that subsidy is capital in nature and therefore not exigible to income tax. Conclusion- We find merit in the claim of the assessee that the VAT subsidy received by it for undertaking substantial...