Sales Tax Remission Is Capital Receipt as It Promoted Industrial Expansion: Calcutta HC

Graphite India Limited Vs CIT (Calcutta High Court) The Calcutta High Court considered two substantial questions of law arising in connected appeals. The first question was whether deduction allowed under Section 80IA of the Income-tax Act should be reduced while computing profits of the business eligible for deduction under Section 80HHC. The appellant submitted that the issue was already covered by the Supreme Court’s decision in Shital Fibers Ltd. v. Commissioner of Income Tax. The Revenue agreed with this submission. Relying on the Supreme Court judgment, the High Court answered the ...