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2012 (12) TMI 208 - AT - Income TaxSales Tax Incentive – Capital vs Revenue - Following the decision of Hon’ble Apex Court in the case of [Sahney Steel and Press Works Ltd. And Others Vs. Commissioner of Income Tax 1997 (9) TMI 3 - SUPREME COURT ] held that:-. Under the Incentive Scheme of the Government, assessee is only entitled to deferment of sales-tax payment, calculated at a percentage of fixed capital investment. In fact, according to him, the sales-tax incentive will be treated as a deferred loan and the assessee is required to reimburse the said loan to the government - amounts in question are to be treated as capital receipt - Since the facts of the year under consideration are identical, respectfully following the above decision of the Tribunal in assessee’s own case for AY 2006-07, assessee’s appeal is allowed. Gratuity to book profit for computation of MAT liability u/s 115 JB - When the assessee has a defined gratuity plan and the liability of the gratuity has been ascertained on the basis of actuarial valuation as per the assessee’s gratuity plan, it cannot be said that the liability of the gratuity is unascertained liability. Therefore, the addition of the provision for gratuity while computing the book profit is uncalled for. The same is deleted - assessee’s appeal is allowed. Expense on foreign travel of Directors – held that:- Burden is upon the assessee to establish that the expenditure was incurred wholly and exclusively for the purpose of business. In respect of foreign travel, the only explanation given by the learned counsel was that the directors’ foreign traveling was for exploring the business opportunities abroad. However, this explanation was too vague and also unsubstantiated - no justification to interfere with the orders of lower authorities in this regard - assessee’s appeal is rejected - In the result, appeal of the assessee is partly allowed.
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