Topic
ITAT Delhi rules that government grants received under the Focus Product Scheme qualify as capital receipts, exempting them from Minimum Alternate Tax (MAT) under Section 115JB. The decision clarifies the tax treatment of export incentives, impacting corporate tax planning and compliance for businesses availing such schemes.
ITAT Ahmedabad rules that a ₹8.16 crore whistleblower reward from the US SEC is taxable under Section 56(1) as 'income from other sources', rejecting the assessee's claim of it being a windfall or capital receipt. The ruling clarifies that rewards arising from conscious whistleblowing efforts-even if unanticipated-are taxable income, impacting whistleblowers and tax practitioners.
ITAT Delhi rules that export incentives under the Focus Product Scheme qualify as capital receipts, exempt from income tax. The decision reinforces the precedent that subsidies tied to capital assets or business expansion are non-taxable, offering relief to exporters facing tax additions on such benefits.
ITAT Delhi rules that interest paid under Section 28 of the Land Acquisition Act, 1894, forms part of enhanced compensation and is exempt under Section 10(37) of the Income Tax Act. The decision overturns the CIT(A)'s order, clarifying that such interest cannot be taxed as income from other sources, impacting landowners receiving enhanced compensation.
ITAT Ahmedabad rules that penalties under Section 271(1)(c) cannot be imposed if the assessee discloses foreign receipts and takes a bona fide legal position that they are capital in nature. The tribunal emphasized that debatable tax positions do not attract penalties, reinforcing protection for taxpayers acting in good faith.