Receipt not in the nature of income cannot be included in book profits for MAT calculation

JMW India Pvt. Ltd. Vs DCIT (ITAT Delhi)

If receipt was not in the nature of income it could not be included in the book profits for the purpose of computation u/s 115JB. Therefore, the interest and the power subsidies received by the assessee under the Government schemes would have to be excluded while computing the book profits u/s 115JB since these were capital receipts and did not fall within the definition of income u/s 2(24) of the Act.

FULL TEXT OF THE ORDER OF ITAT DELHI

This appeal filed by the assessee is directed against the order dated ₈th March, 2018 of the CIT(A)-5, Delhi relating to assessment year 2013-14.

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