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2022 (9) TMI 840 - HC - Income TaxMAT Computation u/s 115JB - interest subsidy and excise refund - Whether would be treated as capital receipt or revenue receipt for the purpose of computation of book profit under the provision of Section 115JB? - HELD THAT:- The substantial question of law involved in this appeal is squarely covered in favour of the assessee and against the revenue in the light of the decision of M/s. Chaphalkar Brothers Pune2017 (12) TMI 816 - SUPREME COURT] held that the finding of the Jammu and Kashmir High Court on the facts of the incentive subsidy contained in that case is absolutely correct. In that once the object of the subsidy was to industrialize the State and to generate employment in the State, the fact that the subsidy took a particular form and the fact that it was granted only after commencement of production would make no difference. Identical issue was also considered in Ankit Metal And Power Ltd. [2019 (7) TMI 878 - CALCUTTA HIGH COURT] wherein apart from considering the effect of the subsidy the Court also considered as to whether when a receipt is not in the character of income as defined under Section 2(24) of the Act, whether it can be said to form part of the book profit under Section 115 JB. Decided against revenue.
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