https://www.taxtmi.com/caselaws?id=774229 The ITAT Mumbai allowed the assessee's appeal on multiple grounds. The tribunal held that expenditure on moulds and dies should be treated as revenue expenditure due to frequent replacement requirements, despite previous years' capital treatment. Capital investment subsidy from J&K Government could not be reduced from asset cost for depreciation calculation as it was intended for industrial development, not asset cost subsidization. Excise duty refund was treated as capital receipt following Supreme Court precedent. Section 14A disallowance was remanded for verification of actual exempt income earned. The tribunal confirmed that Section 14A disallowance should not affect book profit computation under Section 115JB, and upheld the assessee's expense allocation method for Section 80-IB deduction. en-us Fri, 30 May 2025 00:00:00 +0530 Sat, 05 Jul 2025 08:47:32 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=774229 The ITAT Mumbai allowed the assessee's appeal on multiple grounds. The tribunal held that expenditure on moulds and dies should be treated as revenue expenditure due to frequent replacement requirements, despite previous years' capital treatment. Capital investment subsidy from J&K Government could not be reduced from asset cost for depreciation calculation as it was intended for industrial development, not asset cost subsidization. Excise duty refund was treated as capital receipt following Supreme Court precedent. Section 14A disallowance was remanded for verification of actual exempt income earned. The tribunal confirmed that Section 14A disallowance should not affect book profit computation under Section 115JB, and upheld the assessee's expense allocation method for Section 80-IB deduction. Case-Laws Income Tax Fri, 30 May 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=774229