TMI Blog2021 (9) TMI 1434X X X X Extracts X X X X X X X X Extracts X X X X ..... any contrary material brought to our notice, we hold that the above two receipts being not in the nature of income cannot be included for the purpose of computation u/s 115JB - We, therefore, set aside the order of the ld.CIT(A) on this issue and allow the grounds raised by the assessee. - ITA No. 4056/Del/2018 - - - Dated:- 24-9-2021 - Shri R.K. Panda, Accountant Member And Shri Vijay Pal Rao, Judicial Member For the Assessee : Shri C.S. Anand, Advocate Shri Sankalp Anand, Advocate. For the Revenue : Ms Anima Barnwal, Sr. DR. ORDER PER R.K. PANDA, AM: This appeal filed by the assessee is directed against the order dated 8th March, 2018 of the CIT(A)-5, Delhi relating to assessment year 2013-14. 2. The g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... udgment of the Hon ble Supreme Court on 19th April, 2016 in the case of CIT, Jammu vs Shree Balaji Alloys Others where it was held that subsidies including interest subsidy and Excise Duty refund were capital receipts, the assessee filed an appeal before the ld.CIT(A) wherein the assessee had sought reduction of assessable income to the extent of Rs.5,28,50,287/- apart from deletion of disallowances of MAT credits, TDS credits, etc. 4. In appeal, the ld.CIT(A), following his order for the immediately preceding assessment year, allowed the claim of the assessee regarding reduction of assessable income to the extent of Rs.5,28,50,287/-. This was accepted by the Revenue and no appeal has been filed. However, the assessee s claim that such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tation u/s 115JB. Therefore, the interest and the power subsidies received by the assessee under the Government schemes would have to be excluded while computing the book profits u/s 115JB since these were capital receipts and did not fall within the definition of income u/s 2(24) of the Act. He accordingly submitted that this being a covered matter in favour of the assessee, the grounds raised by the assessee should be allowed. 7. The ld. DR, on the other hand, heavily relied on the order of the CIT(A). 8. We have considered the rival arguments made by both the sides and perused the record. The only question to be decided in the instant appeal filed by the assessee is regarding the exclusion of interest subsidy of Rs.30,01,143/- and ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 5JB of the Incometax Act, 1961. For the aforesaid reason, we hold that the interest and power subsidy under the schemes in question would have to be excluded while computing book profit under section 115JB of the Income-tax Act, 1961. 9. Since, in the instant case, the Revenue has accepted the order of the CIT(A) in holding that interest subsidy and Excise Duty refund are capital receipts, therefore, respectfully following the decision of the Hon ble Calcutta High Court in the case of Ankit Metal Power Ltd., cited (supra) and in absence of any contrary material brought to our notice, we hold that the above two receipts being not in the nature of income cannot be included for the purpose of computation u/s 115JB of the IT Act. We, ther ..... X X X X Extracts X X X X X X X X Extracts X X X X
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