Capital employed valuation: exclude uninstalled plant and book created fictitious assets from tax holiday computation. Tax holiday relief is confined to capital actually employed in the undertaking on the first day of the computation period. Plant and machinery not put to use for the business as of that day and book-created or non real assets (fictitious assets such as prepaid charges arising from internal adjustments) must be excluded from the computation of capital employed for the purpose of the tax-holiday deduction.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
Capital employed valuation: exclude uninstalled plant and book created fictitious assets from tax holiday computation.
Tax holiday relief is confined to capital actually employed in the undertaking on the first day of the computation period. Plant and machinery not put to use for the business as of that day and book-created or non real assets (fictitious assets such as prepaid charges arising from internal adjustments) must be excluded from the computation of capital employed for the purpose of the tax-holiday deduction.
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