TMI Blog2013 (7) TMI 763X X X X Extracts X X X X X X X X Extracts X X X X ..... come Tax Appellate Tribunal dated 22.06.2012, this tax appeal is preferred under Section 260F of the Income Tax Act ( the Act hereinafter) proposing following questions of law for our consideration: 1. Whether the Appellate Tribunal has substantially erred in upholding the decision of CIT(A) in holding that the amount of Rs. 1,09,85,482/- received by the assessee on account of Excise Duty Refund is a capital receipt and not liable to tax under the Income Tax Act, by relying on the judgement of Hon ble High Court of Jammu Kashmir in the case of Shree Balaji Alloys [333 ITR 335] ignoring the fact that the said receipts are not earned from manufacturing activity? 2. Whether the Appellate Tribunal has substantially erred in not appreciati ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... was the generation of employment through acceleration of industrial development, to deal with the social problem of unemployment in the State, additionally creating opportunities for self-employment, hence a purpose in public interest. 31. In this view of the matter, the incentives provided to the industrial units, in terms of the new industrial policy, for accelerated industrial development in the State, for creation of such industrial atmosphere and environment in the State, for creation of such industrial atmosphere and environment, which would provide additional permanent source of employment to the unemployed in the State of Jammu and Kashmir, were in fact, in the nature of creation of new assets of industrial atmosphere and environm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n incentives may not be decisive to determine the character of the incentive subsidies, when it is found, as demonstrated in the Office Memorandum, amendment introduced thereto and the statutory notification too that the incentives were provided with the object of creating avenues for perpetual employment, to eradicate the social problem of unemployment in the State by accelerated industrial development. 35. For all what has been said above, the finding of the Tribunal on the first issue that the excise duty refund, interest subsidy and insurance subsidy, being against the law laid down by the Hon ble Supreme Court of India in Sahney Steel case [1997] 228 ITR 253 and Ponni Sugars case [2008] 306 ITR 392. 4. Against such decision of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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