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2015 (11) TMI 1882 - AT - Income TaxNature of receipt - Addition towards Sales Tax Incentive Scheme - Whether as per the Scheme, the assessee need not collect and pay any Sales Tax during the specified period, and allowing deduction towards notional tax liability tantamount to wrong deduction? - HELD THAT:- An investment in the initial fixed capital was made at Rs.283.01 lacs. An application was made to the District Industries Centre for issue of eligibility certificate for exemption from payment of sales tax under 1990 Scheme. The appellant was granted the eligibility certificate on 09-06-2000. As per the said eligibility certificate; the assessee was entitled for exemption from payment of sales tax up to Rs.254.70 lacs for a period of ten years from 15th July, 2000 to 14th July, 2010. Later on, further investment was enhanced and accordingly renewed eligibility certificate was granted. We have also considered the object of 1993 Scheme and the main feature was to grant incentive to the industries established in the backward areas for development of under-developed region of Maharastra State. We have also examined the legal aspect whether the subsidy in question is capital in nature or revenue in nature. After going through the decisions cited before us and few of them already discussed by the learned CIT (A), we are of the considered opinion that the issue is squarely covered by those decisions especially by the decision of Reliance Industries Ltd. [2003 (10) TMI 255 - ITAT BOMBAY-J] - We are not discussing all the decision delivered on this issue although discussed during the course of hearing. Assessee company was justified in claiming the sales tax incentives as exempt and not to be taken into account in computing the taxable income. The view taken by the CIT (A) is accordingly confirmed. The ground of appeal raised by the Revenue is dismissed.
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