Capital subsidy to be reduced while computing book profit u/s. 115JB: ITAT Nagpur

Economic Explosives Ltd. Vs ACIT (ITAT Nagpur) ITAT Nagpur held that sales tax subsidy is capital subsidy and accordingly it should be reduced for computation of book profit under section 115JB of the Income Tax Act. Accordingly, appeal allowed. Facts- The case of the assessee was selected for complete scrutiny under CASS. Notably, the assessee was entitled to the Sales Tax Subsidy viz., Value Added Tax and Sales Tax collected by the assessee on sales made during the year under consideration. The Sales Tax Subsidy was linked to the investment made by the assessee, however, it was payable in th...