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2009 (5) TMI 72 - HC - Income TaxCapital receipt versus Revenue Receipt - additional quota for free sale of sugar – CIT(A) found that , the very right to receive the excess price and the excess excise duty was based on the obligation to recoup the capital employed, since the amount could not have been received without that obligation, there was a clear nexus and consequently a diversion of income. Hence, from any point of view the amounts received took the nature of capital receipt by reason of the incentive scheme and thus, could not be treated as part of the assessee’s income – held that - main eligibility condition for the scheme was that the incentive had to be utilised for the repayment of loans taken by the assessee to set up a new unit or substantial expenses of a existing unit and subsidy receipt by the assessee was not in the course of a trade and was of capital nature – ITAT order confirmed the decision of CIT(A) not interfered with.
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