The Tax Publishers2019 TaxPub(DT) 6840 (Kol-Trib)

INCOME TAX ACT, 1961

Section 115JB

Industrial Promotion Assistance and Sales Tax Incentive being capital receipt were not in the nature of income and, therefore, same could not be regarded as income even for the purpose of book profits under section 115JB though credited in the profit and loss account and had to be excluded for arriving at book profits under section 115JB.

MAT - Computation of book profit - Treatment of Industrial Promotion Assistance and Sales Tax Incentive -

Assessee sought exclusion of Industrial Promotion Assistance and Sales Tax Incentive while computing book profit under section 115JB. AO denied this.Held: Industrial Promotion Assistance and Sales Tax Incentive being capital receipt were not in the nature of income and, therefore, same could not be regarded as income even for the purpose of book profits under section 115JB though credited in the profit and loss account and had to be excluded for arriving at book profits under section 115JB.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. : 2012-13

INCOME TAX ACT, 1961

Section 14A

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