TMI Blog2009 (4) TMI 516X X X X Extracts X X X X X X X X Extracts X X X X ..... and the same is deleted in the light of the same order Whether Tribunal was right in allowing under section 43B of the Income-tax Act the unpaid customs duty and excise duty including in the closing stock – Whether, on the facts and in the circumstance of the case and in law, the hon'ble Tribunal was right in confirming the direction given by the Commissioner of Income-tax (Appeals) to the Assessing Officer to allow, for the purpose of computation of book profits under section 115JA of the Income-tax Act, the deduction under section 80HHC on the basis of profits and gains as computed under Chapter IV of the Income-tax Act and not on the basis of book profit under section 115JA ? - Whether, on the facts and in the circumstance of the case ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... les tax incentive is a capital receipt ? (E) Whether, on the facts and in the circumstance of the case and in law, the hon'ble Tribunal was right in confirming the direction given by the Commissioner of Income-tax (Appeals) to the Assessing Officer to allow, for the purpose of computation of book profits under section 115JA of the Income-tax Act, the deduction under section 80HHC on the basis of profits and gains as computed under Chapter IV of the Income-tax Act and not on the basis of book profit under section 115JA ? (F) Whether, on the facts and in the circumstance of the case and in law, the hon'ble Tribunal was right in holding that pre-operative expenses and trial run expenses that have been capitalised in the books of account ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... formulated by its resolution dated January 5, 1980, has been analysed in detail by the Tribunal in its order in RIL for the assessment year 1985-86 which we have already referred to in extenso. On an analysis of the scheme, the Tribunal has come to the conclusion that the thrust of the scheme is that the assessee would become entitled for the sales tax incentive even before the commencement of the production, which implies that the object of the incentive is to fund a part of the cost of the setting up of the factory in the notified backward area. The Tribunal has, at more than one place, stated that the thrust of the Maharashtra scheme was the industrial development of the backward districts as well as generation of employment thus establi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which the subsidy is paid is not relevant. The source is immaterial. Form of subsidy is material. The court then proceeded to observe as under (page 400) : "The main eligibility condition in the scheme with which we are concerned in this case is that the incentive must be utilized for repayment of loans taken by the assessee to set up new units or for substantial expansion of existing units. On this aspect there is no dispute. If the object of the subsidy scheme was to enable the assessee to run the business more profitably then the receipt is on revenue account. On the other hand, if the object of the assistance under the subsidy scheme was to enable the assessee to set up a new unit or to expand the existing unit then the receipt of t ..... X X X X Extracts X X X X X X X X Extracts X X X X
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