Case Law Details
Aamor Inox Ltd Vs DCIT (ITAT Delhi)
Introduction: The case of Aamor Inox Ltd vs. DCIT, as heard by ITAT Delhi, revolves around the treatment of MEIS (Merchandise Exports from India Scheme) Licenses under the Income Tax Act.
1. Background: Aamor Inox Ltd, a company engaged in steel manufacturing, filed its income tax return for the Assessment Year 2018-19, declaring a loss under regular provisions of the Income Tax Act and book profit under Section 115JB of the Act.
2. Receipt of MEIS Incentives: During the assessment year, the company received MEIS incentives amounting to Rs. 2,15,96,571/-. These incentives were declared as revenue receipts in the income tax return and taxed accordingly.
3. Assessee’s Appeal: Aamor Inox Ltd appealed the inclusion of MEIS incentives as revenue receipts, contending that these should be treated as capital receipts and hence not taxable. They also sought the exclusion of these incentives from the book profits computed under Section 115JB of the Act.
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