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2012 (5) TMI 180 - HC - Income TaxDisallowance of legal claim of deduction u/s 80-P(2)(a)(iii) wherein the appellant having inadvertently claimed deduction only u/s 80-P(2)(d) Held that:- As per bye-laws of the appellant-sugar mill it is engaged in the manufacturing of sugar products from the sugarcane supplied by its members, who are admittedly sugarcane growers - Since appellant-sugar mill is engaged in marketing of agricultural produce of its members, it is entitled for the exemption as provided under Section 80-P (2) (a) (iii) of the Act in favour of assessee. Taxability of the extra money collected against levy of sugar in view of the incentive scheme of the Govt. Held that:- Grant was not for the purpose of bringing into existence new assets but was for the purpose of making payment to the sugarcane growers thus same shall be treated as capital receipt Decided in the case of CIT v. Ponni Sugars & Chemicals Ltd. [2008 - TMI - 30719 - SUPREME COURT] that the payment received by the assessee under the Scheme was not in the course of a trade but was of capital nature - in favour of the assessee.
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