2011 (1) TMI 394 - JAMMU AND KASHMIR HIGH COURT

Deductions u/s 80-IB - Capital or revenue receipt - Notification No. 1(11)/2002-NER dated October 22, 2002 - All new industries in the notified locations were eligible for capital investment subsidy at 15 per cent. of their investment in plant and machinery, subject to a ceiling of ₹ 30 lakhs whereas the existing units were entitled to subsidy on substantial expansion, as defined - The exemption contained in this notification shall apply to any of the said units for a period not exceeding ten years from the date of publication of this notification in the Official Gazette or from the date of commencement of commercial production whichever is later - looking to the purpose, of eradication of the social problem of unemployment in the State by acceleration of the industrial development and removing backwardness of the area that lagged behind in industrial development, which is certainly a purpose in the public interest, the incentives provided by the office memorandum and statutory notifications issued in this behalf, to the appellants-assessees, cannot be construed as mere production and trade incentives, as held by the Tribunal - Held that: receipt are capital receipt - Decided in the favour of the assessee