Functional comparability governs selection of support-service and IT-enabled service comparables, with verification required for unresolved data and m...
Bank account freezing requires statutory authority; anti-money-laundering compliance and KYC monitoring do not permit unilateral indefinite restrictio...
Capital subsidy received by assessee for setting up new industry, by way of refund of sales tax/excise duty, is a capital receipt not includible in book profits for MAT computation u/s 115JB. Once subsidy is reduced from written down value (WDV) of assets for depreciation purposes, it cannot be treated as income u/s 2(24)(xviii) from A.Y. 2016-17 onwards. Capital receipts are excluded from book profits even if credited in profit and loss account. Allowing subsidy for depreciation but disallowing for MAT would lead to double taxation. Consistent treatment should be given for regular income and MAT purposes.
Capital subsidy received by assessee for setting up new industry, by way of refund of sales tax/excise duty, is a capital receipt not includible in book profits for MAT computation u/s 115JB. Once subsidy is reduced from written down value (WDV) of assets for depreciation purposes, it cannot be treated as income u/s 2(24)(xviii) from A.Y. 2016-17 onwards. Capital receipts are excluded from book profits even if credited in profit and loss account. Allowing subsidy for depreciation but disallowing for MAT would lead to double taxation. Consistent treatment should be given for regular income and MAT purposes.
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