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2019 (11) TMI 133 - AT - Income TaxAdditional depreciation as claimed on capital subsidy which was required to be deducted from the cost of fixed assets - HELD THAT:- In the present case it is an admitted fact that the A.O. reduced the total amount of subsidy of ₹ 32,59,741/- whereas the claim of the assessee is that the amount of ₹ 10,04,264/- was only received, the same was to be deducted from the cost of fixed assets and that no additional depreciation was to be worked out since the machinery was not purchased in the year of receipt of the subsidy where as the additional depreciation was allowable only in the year in which the machinery was purchased. The aforesaid claim of the assessee requires verification, therefore considering the totality of the fact deem it appropriate to set aside this issue back to the file of the A.O. to be adjudicated afresh in accordance with law after providing due and reasonable opportunity of being heard to the assessee. Calculation of the book profit u/s 115JB - not deducting the amount of Capital Subsidy from the book profit - HELD THAT:- A.O. considered the Subsidy as capital receipt and reduced it from the cost of assets therefore it was not chargeable to tax at all under any head of the income, then it could not have been treated as part of the Net Profit as per Profit & Loss Account, so could not have been held to be taxable as book profit under MAT in terms of Section 115JB of the Act. So respectfully following the case of M/S. JSW STEEL LIMITED, (FORMERLY KNOWN AS JINDAL VIJAYNAGAR STEEL LIMITED) [2017 (4) TMI 47 - ITAT MUMBAI] this issue is decided in favour of the assessee.
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