Case Law Details
Indogulf Cropsciences Ltd. Vs ACIT (ITAT Delhi)
ITAT Delhi held that as receipt of an interest subsidy received under the scheme is not income at all and hence the same has to be excluded while computing book profits under section 115JB of the Income Tax Act.
Facts-
The assessee company is having a unit in Jammu & Kashmir on which deduction u/s 80IC has been claimed. During the assessment proceedings, AO gathered that the assessee has received an excise refund amounting to Rs. 6,76,32,413/- and an interest subsidy amounting to Rs. 32,77,053/- which have been claimed as capital receipts.
AO held that the scheme of Section 115JB of the act does not permit for exclusion of capital receipts (excise refund and interest subsidy) as done by the assessee while computing the book profits for Section 115JB of the Act and accordingly recomputed the profit for Section 115JB of the Act at Rs. 12,20,88,089/-.
Please become a Premium member. If you are already a Premium member, login here to access the full content.
Author Bio
