The assessee received sales tax subsidy under the Maharashtra Package Scheme of Incentives, 2007, which was treated as a capital receipt and adjusted against the written-down value of fixed assets for computing depreciation. Although the subsidy was credited to the profit and loss account, no reduction was claimed while computing book profit under section 115JB. The Tribunal held that once the subsidy had been adjusted against the written down value of the assets and accepted by the Department as a capital receipt, it ceased to be income under section 2(24)(xviii). A capital receipt cannot be subjected to tax even while computing book profit under section 115JB. The assessee was therefore entitled to reduce the subsidy from the computation of book profit notwithstanding that the claim had not been made in the original return. (AY. 2017-18 & 2018-19).<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 115JB: Company-Book profit-Minimum Alternate Tax-Book profit-Sales tax subsidy-Capital receipt-Subsidy reduced from written-down value of assets-Not includible in book profit. [S.2(24)(xviii)]<\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_feature_clip_id":0,"_jetpack_memberships_contains_paid_content":false,"footnotes":"","jetpack_post_was_ever_published":false},"categories":[21],"tags":[],"class_list":["post-63792","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-gAU","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63792","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=63792"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63792\/revisions"}],"predecessor-version":[{"id":63793,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/63792\/revisions\/63793"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=63792"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=63792"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=63792"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}