While computing book profit under section 115JB, the entire amount of profits eligible under section 80HHC was to be excluded from book profit and not 80 per cent thereof. Sales tax incentive/remission received by assessee-company under State incentive scheme linked to fixed capital investment for expansion in a backward area, being capital in nature, was to be excluded from computation of book profit under section 115JB and fell outside ambit of income under section 2(24). (AY. 2001-02)
Graphite India Ltd. v. CIT (2026) 310 Taxman 543 (Cal)(HC)
S. 115JB : Book profit-While computing book profit under section 115JB, entire amount of profits eligible under section 80HHC was to be excluded from book profit and not 80 per cent thereof-Sales tax incentive/remission received by assessee-company under State incentive scheme linked to fixed capital investment for expansion in a backward area, being capital in nature, was to be excluded from computation of book profit under section 115JB and fell outside ambit of income under section 2(24) [S.2(24), 80HHC, 260A]
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