https://www.taxtmi.com/caselaws?id=778694 ITAT AHMEDABAD - AT upheld that the sales tax subsidy under a backward area development scheme is a capital receipt not taxable and must be excluded from book profits under s.115JB; precedents of the SC and HC were followed. Excess depreciation on intangible assets was allowed as per earlier findings and product registration expenses were held deductible as revenue expenditure under s.37(1). Deduction under s.80IA was allowed in principle but AO directed to recompute eligible profits after specified adjustments. Guarantee commission addition was restricted to 0.50% of guarantee value. Depreciation on goodwill granted earlier and the resulting WDV were held final. en-us Thu, 28 Aug 2025 00:00:00 +0530 Mon, 15 Sep 2025 11:59:54 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=778694 ITAT AHMEDABAD - AT upheld that the sales tax subsidy under a backward area development scheme is a capital receipt not taxable and must be excluded from book profits under s.115JB; precedents of the SC and HC were followed. Excess depreciation on intangible assets was allowed as per earlier findings and product registration expenses were held deductible as revenue expenditure under s.37(1). Deduction under s.80IA was allowed in principle but AO directed to recompute eligible profits after specified adjustments. Guarantee commission addition was restricted to 0.50% of guarantee value. Depreciation on goodwill granted earlier and the resulting WDV were held final. Case-Laws Income Tax Thu, 28 Aug 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=778694