https://www.taxtmi.com/caselaws?id=758491 The ITAT Nagpur ruled in favor of the assessee regarding treatment of sales tax subsidy in MAT computation. The tribunal held that when subsidy is reduced from written down value of assets, it becomes a capital receipt and cannot be included in book profit calculation under section 115JB. The AO had accepted the reduction of subsidy from WDV for depreciation purposes but included it in MAT computation, creating an inconsistent position. The tribunal directed exclusion of capital subsidy from book profit computation, emphasizing that once subsidy reduces asset cost, it cannot be treated as income under section 2(24)(xviii) and including it would result in indirect double taxation. en-us Mon, 09 Sep 2024 00:00:00 +0530 Wed, 11 Sep 2024 18:18:56 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=758491 The ITAT Nagpur ruled in favor of the assessee regarding treatment of sales tax subsidy in MAT computation. The tribunal held that when subsidy is reduced from written down value of assets, it becomes a capital receipt and cannot be included in book profit calculation under section 115JB. The AO had accepted the reduction of subsidy from WDV for depreciation purposes but included it in MAT computation, creating an inconsistent position. The tribunal directed exclusion of capital subsidy from book profit computation, emphasizing that once subsidy reduces asset cost, it cannot be treated as income under section 2(24)(xviii) and including it would result in indirect double taxation. Case-Laws Income Tax Mon, 09 Sep 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=758491