Tribunal held that the excise duty refund was on account of establishment of a new industrial undertaking in the State of Jammu and Kashmir as an incentive to promote industrial activity in the State of Jammu and Kashmir and was in the nature of capital subsidy not liable to tax. Thus, the excise duty refund had to be excluded from the computation of section 115JB as well as it was a capital receipt. ( AY.2007-08 to 2011-12)
Ultimate Flexipack Ltd. v Dy. CIT (2020)78 ITR 410( Delhi) (Trib)
S.115JB: Book Profits — Subsidy received in form of Excise Duty refund for establishment of new industrial undertaking — Capital subsidy not liable to tax — Excludible from computation of book profits.