https://www.taxtmi.com/caselaws?id=286785 Interest subsidy received under TUFS/State incentive scheme was held to be a capital receipt because, following binding co-ordinate bench precedent on an identical incentive scheme, the subsidy was treated as intended to promote industrial activity and not as trading income; the addition was deleted and the Revenue's ground failed. Set-off of unabsorbed depreciation of a 100% EOU against profits of a non-eligible unit was allowed since the assessee had validly opted out of s.10B under s.10B(8), making the EOU profits subject to ss.70-72, reinforced by SC treating s.10B as a deduction provision; the Revenue's ground was dismissed. Additional depreciation under s.32(1)(iia) was allowed in a subsequent year as "new" refers to the asset's status at acquisition/installation and the restriction to the initial year ceased from 01.04.2006; the Revenue's ground was dismissed. Under s.115JB, profit on sale of fixed assets was excluded from book profit by applying Tribunal precedent; the deletion was upheld. en-us Wed, 01 Mar 2017 00:00:00 +0530 Wed, 07 Jan 2026 10:39:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=286785 Interest subsidy received under TUFS/State incentive scheme was held to be a capital receipt because, following binding co-ordinate bench precedent on an identical incentive scheme, the subsidy was treated as intended to promote industrial activity and not as trading income; the addition was deleted and the Revenue's ground failed. Set-off of unabsorbed depreciation of a 100% EOU against profits of a non-eligible unit was allowed since the assessee had validly opted out of s.10B under s.10B(8), making the EOU profits subject to ss.70-72, reinforced by SC treating s.10B as a deduction provision; the Revenue's ground was dismissed. Additional depreciation under s.32(1)(iia) was allowed in a subsequent year as "new" refers to the asset's status at acquisition/installation and the restriction to the initial year ceased from 01.04.2006; the Revenue's ground was dismissed. Under s.115JB, profit on sale of fixed assets was excluded from book profit by applying Tribunal precedent; the deletion was upheld. Case-Laws Income Tax Wed, 01 Mar 2017 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=286785