2021 (9) TMI 1434

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.... Subsidy amounting to Rs. 30,01,143/- and of Excise Duty Refund amounting to Rs. 4,98,49,144/-, being capital in nature, in computing book profit u/s 115JB . 2. That on the facts and in the circumstances of the case ,the book profit u/s 115JB ought to had been computed at a negative figure, as per the Revised Computation of Income filed by the assessee." 3. Facts of the case, in brief, are that the assessee is a company engaged in the business of trading and manufacturing of copper products (i.e., copper wire rod, copper strips/paper covered strips/bare copper wire etc.). It filed its return of income on 30.11.2013 declaring total income at Rs.1,23,71,780/-. The Assessing Officer completed the assessment determining the total income at R....

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....r:- "4.5 It has been clearly stated that no adjustments other than those mentioned in the explanation can be made to the book profit. It is clear that the appellant company has included the aforesaid amounts as revenue receipts while computing book profits. The explanation does not provide for any reduction of an amount which is to be treated of a capital nature in accordance with the Income Tax Act for the purpose of computation of book profit. Therefore, the MAT credit allowability to the appellant may be required to be modified and reduced. This is due to the reason that the regular tax or the tax of normal income in the appellant's case will reduce on whereas the tax on book profit would not change. This ground of appeal is theref....

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....on'ble Calcutta High Court in the case of PCIT vs. Ankit Metal & Power Ltd., reported in 416 ITR 591 wherein it has been held as under:- "30. Now the second issue which requires adjudication is as to whether the aforesaid incentive subsidies received by the assessee from the Government of West Bengal under the schemes in question are to be included for the purpose of computation of book profit under section 115JB of the Incometax Act, 1961 as contended by the Revenue by relying on the decision in the case of Apollo Tyres Ltd. v. CIT reported in [2002] 255 ITR 273 (SC). 31. In this case since we have already held that in the relevant assessment year 2010-11 the incentives "interest subsidy" and "power subsidy" is a "capital receipt" and ....