Purpose Test Wins Again: ITAT Treats ₹22.6 Cr Sales Tax Incentive as Capital

Jindal Poly Films Ltd. Vs ACIT (ITAT Delhi) This appeal returned to the Tribunal pursuant to directions of the Hon’ble Delhi High Court dated 09.05.2025, which held that the Tribunal had earlier wrongly presumed the year to be “unabated”. The High Court clarified that since a notice u/s 153A was issued when assessment proceedings were already pending pursuant to a revision u/s 263, the assessment had abated. Therefore, AO had full power to frame a fresh assessment even without incriminating material. On remand, Tribunal examined the two main issues on merits: Sales Tax Subsidy of ₹22.6...