INCOME TAX ACT, 1961

Section 115JB

MAT - Computation of book profit - Treatment of sales tax subsidy received for setting up of new indsutrial unit -

Assessee had received a sales tax subsidy from Government of Karnataka for setting up a new industrial unit in backward area of the state refund of sales tax subsidy was routed through profit and loss account and hence, the same was considered by AO as part of book profits under section 115JB.Held: Sales tax subsidy being capital in nature was not in the nature of income, and could not be regarded as income even for the purpose of book profit under section 115JB, though credited in profit and loss account and had to be excluded for arriving at book profit under section 115JB.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2006-07

INCOME TAX ACT, 1961

Section 253(5)

SUBSCRIBE FOR FULL CONTENT