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Pr. Commissioner Of Income Tax Ajmer vs M/S Nitin Spinners Ltd. on 31 August, 2021

32. The Ground No. 2 of the Revenue is regarding deletion of addition received as incentive under FPS/FMS as capital receipt. The said issue has been dealt and decided against the Revenue for the Assessment Year 2014- 15, wherein the Judgment of Hon'ble High Court of Rajasthan and also the Judgment of Hon'ble Supreme Court in the case of Principal Commissioner of Income Tax, Ajmer Vs. Nitin Spinners Ltd. has been relied and held that the above subsidy has to be treated as capital in nature and is excludable from book profit u/s 115JB of the Act. By finding the parity, we find no merit in Ground No. 2 of the Revenue, accordingly, Ground No. 2 of the Revenue is dismissed.
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