https://www.taxtmi.com/caselaws?id=312558 ITAT Ahmedabad held that sales tax subsidy, excise duty incentive, and debenture redemption reserve were not taxable additions under section 115JB. Applying the "purpose test" from Ponni Sugars case, the tribunal determined that subsidies aimed at encouraging investment in earthquake-affected Kutch district were capital receipts, not revenue. The debenture redemption reserve was not a true reserve but provision for known liability. Revenue's additions were deleted. The tribunal also rejected depreciation disallowance on subsidy, finding no linkage between subsidy and asset acquisition costs. en-us Thu, 04 Aug 2022 00:00:00 +0530 Wed, 18 Dec 2024 15:45:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=312558 ITAT Ahmedabad held that sales tax subsidy, excise duty incentive, and debenture redemption reserve were not taxable additions under section 115JB. Applying the "purpose test" from Ponni Sugars case, the tribunal determined that subsidies aimed at encouraging investment in earthquake-affected Kutch district were capital receipts, not revenue. The debenture redemption reserve was not a true reserve but provision for known liability. Revenue's additions were deleted. The tribunal also rejected depreciation disallowance on subsidy, finding no linkage between subsidy and asset acquisition costs. Case-Laws Income Tax Thu, 04 Aug 2022 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=312558