https://www.taxtmi.com/caselaws?id=414317 VAT remission under an industrial incentive scheme was treated as a capital receipt because the decisive test was the scheme's object: to promote industrial expansion, fixed capital investment and employment. On that purpose-based approach, the remission fell in the capital field and was not taxable as revenue income under normal provisions. The same receipt was also excluded from book profit under section 115JB because a sum that is not income in character cannot be brought into MAT computation merely by credit in the profit and loss account. The subsidy was therefore excluded from taxation under both computations. en-us Thu, 28 Oct 2021 00:00:00 +0530 Thu, 30 Dec 2021 15:05:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=414317 VAT remission under an industrial incentive scheme was treated as a capital receipt because the decisive test was the scheme's object: to promote industrial expansion, fixed capital investment and employment. On that purpose-based approach, the remission fell in the capital field and was not taxable as revenue income under normal provisions. The same receipt was also excluded from book profit under section 115JB because a sum that is not income in character cannot be brought into MAT computation merely by credit in the profit and loss account. The subsidy was therefore excluded from taxation under both computations. Case-Laws Income Tax Thu, 28 Oct 2021 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=414317