https://www.taxtmi.com/caselaws?id=769167 ITAT Ahmedabad held that sales tax subsidies received from Punjab and Haryana state governments constituted capital receipts, as affirmed by SC dismissal of revenue's appeal. The subsidy must be deducted from fixed asset costs under Explanation 10 to Section 43(1) for depreciation computation, regardless of receipt timing or mode. However, regarding MAT liability under Section 115JB, the AO lacked authority to adjust book profits since accounts were prepared per Companies Act standards and auditor-certified. The subsidy's treatment in capital reserves without P&L impact was proper, making AO's Section 115JB addition unjustified. en-us Tue, 25 Mar 2025 00:00:00 +0530 Mon, 21 Apr 2025 08:41:41 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=769167 ITAT Ahmedabad held that sales tax subsidies received from Punjab and Haryana state governments constituted capital receipts, as affirmed by SC dismissal of revenue's appeal. The subsidy must be deducted from fixed asset costs under Explanation 10 to Section 43(1) for depreciation computation, regardless of receipt timing or mode. However, regarding MAT liability under Section 115JB, the AO lacked authority to adjust book profits since accounts were prepared per Companies Act standards and auditor-certified. The subsidy's treatment in capital reserves without P&L impact was proper, making AO's Section 115JB addition unjustified. Case-Laws Income Tax Tue, 25 Mar 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=769167