SOLAR DEFENCE AND AEROSPACE LIMITED (EARLIER KNOWN AS ECONOMIC EXPLOSIVES LIMITED),NAGPUR vs. DEPUTY COMMISSIONER OF INCOME TAX CIRCLE-1, NAGPUR

ITA 656/NAG/2025Status: DisposedITAT Nagpur31 August 2026AY 2016-176 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the subsidy received was a capital receipt and should be excluded from MAT computation. The AO should have considered subsequent favorable orders for the assessee.

What were the facts?

The assessee received a capital subsidy but inadvertently did not reduce it from book profits for MAT computation. An application for rectification was dismissed, and the CIT(A) held it was not a mistake apparent from the record.

What were the issues?

Whether a capital subsidy not reduced from book profits for MAT computation can be rectified under Section 154, and if such subsidy is a capital receipt.

Which sections of the Income-tax Act were involved?

Section 115JB,Section 154

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, “DB” BENCH, NAGPUR

Before: SHRI ANUBHAV SHARMA & SHRI KHETTRA MOHAN ROY

Hearing: 17.06.2026Pronounced: 31.08.2026

PER ANUBHAV SHARMA, JM:

This appeal is preferred by the assessee against the order dated 21.08.2025 of the Ld. Addl/JCIT(A) Raipur (hereinafter referred as Ld. First Appellate Authority or in short Ld. ‘The FAA’) in DIN & Order No:

P a g e | 2 Solar Defence and Aerospace Limited (AY: 2016-17) ITBA/APL/S/250/2025-26/1079842946(1) arising out of the assessment order dated 29.11.2018 u/s 143(3) of the Income Tax Act, 1961 (hereinafter referred to as ‘the Act’) passed by DCIT/ACIT, Central Circle-1(2) Nagpur, for AY: 2016-17. 2.

The order continues below.

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