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2012 (11) TMI 845 - AT - Income TaxCapital Receipt vs Revenue Receipt - Deduction u/s 80IB - Excise duty refund, interest subsidy and insurance subsidy – Held that :- 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, which would provide additional permanent source of employment to the unemployed in State of Jammu and Kashmir, were in fact, in the nature of creation of new assets of industrial atmosphere and environment, having the potential of employment generation to achieve a social object. Such incentives, designed to achieve public purpose, cannot, by any stretch of reasoning, be construed as production or operational incentives for the benefit of assesses alone – Order of CIT(A) in holding that the Excise Duty refund is to be treated as ‘capital receipt’ in the hands of the assessee and not liable to be taxed is confirmed – appeal by revenue is dismissed. Decisions in in the case of Shree Balaji Alloys v. CIT and Another [2011 (1) TMI 394 - JAMMU AND KASHMIR HIGH COURT] followed.
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