#Focus Product Scheme

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 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.