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2012 (11) TMI 182 - AT - Income TaxDeduction u/s 80IB - Whether amount of excise refund and interest subsidy received by the appellants is a capital receipt and, thus, not liable to tax under the provisions of the Act, or revenue receipt and if revenue receipts whether eligible for deduction u/s 80IB – Held that:- Incentives provided to Industrial establishment are for 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. Excise Duty refund is to be treated as ‘capital receipt’ in the hands of the assessee and not liable to be taxed. - In the result, both the appeals of the Revenue are dismissed.
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