Case Law Details
BSL Ltd Vs DCIT (ITAT Delhi)
ITAT Delhi held that interest receipt under Technology Upgradation Fund Scheme (TUFS Scheme) being capital in nature needs to be excluded while working out the book profits under section 115JB of the Income Tax Act.
Facts- The assessee claimed the exclusion of interest subsidy of Rs.3,03,80,678/- from the profits while computing the book profits u/s 115JB of the Act as on additional ground. Notably, interest subsidy was received under Technology Upgradation Fund Scheme (TUFS) during the year under consideration. It was submitted that the subsidy received was reduced from the interest expenses and thus indirectly the interest subsidy was offered to tax.
CIT(A) held that provisions of Section 115JB of the Act overrides other provisions of the Act and accordingly only those adjustments which are given in the explanation shall be made and no other addition or deduction can be allowed. CIT(A) held that though the interest subsidy received by the assessee was capital in nature but since it was not prescribed in any explanation u/s 115JB, the same cannot be allowed for exclusion under the provision of MAT and therefore the deduction cannot be allowed. Hence, CIT(A) denied the claim of the assessee for excluding the interest subsidy for working out the provisions of MAT.
Being aggrieved, the present appeal is filed by the assessee.
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