Whether the interest subsidy and excise refund would be treated as capital receipt or revenue receipt for the 115JB

Last updated: 18 January 2023

Save Share

Quick Summary

This judgement clarifies whether interest subsidies and excise refunds should be treated as capital or revenue receipts when calculating book profit under Section 115JB of the Income Tax Act. The High Court ruled in favour of the assessee, determining that such subsidies, provided for industrial development and employment generation, are capital in nature. Consequently, they cannot be included in the computation of book profit under Section 115JB.

Court :
Kolkata High Court

Brief :
Since interest subsidies and power subsidies are provided by the government to the entities establishing units in specified areas are of Capital nature. The subsidies are given to develop the specified areas and generate employment. Since these subsidies are of capital nature and hence cannot be included to compute Book Profit under provisions of Section 115JB of the Income tax Act, 1961.

Citation :
ITA/18/2021-IA No.GA/2/2018 (Old No.GA/515/2018)

Daily Limit Reached

You have reached your daily limit of 2 Free Judgements

Subscribe to CCI PRO for unlimited access

Why Upgrade to CCI PRO?

No Ads
WhatsApp Community
Daily E-Newsletter
Unlimited Judgements Access
Profile Visitors
Link Social Profiles
Featured Job Posts
Pro Badge
Expert GST Guidance
Unlimited Forum Replies
Download Content in PDF

1 Year PLAN

1999

(Excl. of GST ₹359)

2 Years PLAN

3499

(Excl. of GST ₹629)

BEST VALUE

3 Years PLAN

4999

(Excl. of GST ₹899)

View all CCI PRO benefits

Already a PRO member? Login here for an ad-free experience. 07941056694

315 Views Comment Share Income Tax Report

Judgement posted by

FCS Deepak Pratap Singh

Associate Vice President - Secretarial & Compliance (SBI General Insurance Co. Ltd.)

Dear Friends, MyselfFCSDeepak P. Singh ( B.Sc.. LLB, FCS. FIII, CIAFP, CRMP, ID) , A Fellow Member of ICSI, Law Graduate ,Fellow Member of Insurance Institute of India, Certified Independent Director ,Certified Insurance Anti Fraud Professional , Certified Risk Governance Professional ( ICSI-III) and cleared Limited I ... Read more

View Judgements

Comments