Subsidy for Export Potential Deemed Capital Receipt, Excludable from Book Profit Under Section 115JB

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....ITAT ruled on characterization of Focus Product/Market Scheme subsidy as capital receipt. The tribunal determined that the government subsidy aimed at enhancing export potential should be treated as capital receipt, excludable from book profit under Section 115JB. Relying on precedents from RSWM Ltd. and Nitin Spinners Ltd., the tribunal held that the subsidy constitutes a capital receipt in computing total income. Consequently, the assessee's claim was accepted, with Ground No. 1 decided in the taxpayer's favor, establishing the capital nature of the trade policy-related subsidy.....