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2016 (6) TMI 890 - AT - Income TaxCapital subsidy received under the Bihar Incentive package - whether not to be deducted from WDV of the plant and machinery? - Held that:- Instant appeal is identical to the ground raised in the appeal for assessment years 2008-09 and 2009-10 which was also allowed by learned CIT(A) in the instant assessment year following the afore-stated decisions of the Tribunal in assessee company’s own case for the assessment year 2008-09 and 2009-10, hence, Respectfully following the decisions of the co-ordinate benches of this Tribunal in assessee company’s own case as set out above, we hold that the capital subsidy received under the Bihar Incentive Package 2006 is not required to be deducted from WDV of plant and machinery - Decided against revenue Reimbursement of commercial taxes(VAT) on Molasses under Bihar Incentive Package 2006 - Held that:- t the reimbursement of commercial taxes (VAT) on purchase of Molasses under Bihar incentive Package 2006 is given to promote establishment of new units and for expansion of capacity of existing units. As per this scheme, the distillery is entitled for reimbursement of commercial taxes(VAT) paid on purchase of molasses for production of alcohol and the said benefit will be available for five years from the date of establishment of distillery unit. We do not find any reason to interfere with the order of the learned CIT(A) with respect to this issue also as this scheme of reimbursement of commercial taxes(VAT) on purchase of Molasses under Bihar Incentive Package 2006 is similar to scheme of reimbursement of excise duty under Bihar Incentive Package 2006 and we hold that this is a capital receipt which is not chargeable to tax MAT computation - Held that:- Non entitlement to AO to add the capital subsidy and excise duty reimbursements received by the assessee company under Bihar Incentive Package 2006 to the book profit computed u/s. 115JB
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