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2017 (8) TMI 1336 - HC - Income TaxSales-tax subsidy - nature of receipt - whether is a capital receipt which is not exigible to tax? - Held that:- Tax liability, we have considered original purpose for which the Scheme has been floated by the State Government by going through the Scheme. At the relevant time the State Government need employment generation therefore it has come out with the Generation of Employment for which capital investment was necessary and therefore to boost capital investment scheme has been floated for exemption of sales tax which can be capitalised against the capital which has been invested against the loss of interest which they have made investment apart from 1.50 crores and over a period of 11 years they have to realised the investment made. As gone through the Scheme and relevant Budget Speech of the Finance Minster and all other documents and more particularly the tribunal while considering the Scheme has analyised completely in para no.5.13 and has come to the conclusion in view of the observations made by the Supreme Court in Pony Sugar ( 2008 (9) TMI 14 - SUPREME COURT). Tribunal has not committed any error and view taken by the Tribunal is just and proper. It is nothing but capital investment by investing huge amount of 1.57 crores. - Decided in favour of assessee.
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