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2019 (11) TMI 750 - AT - Income TaxAddition on account of repairs and maintenance - HELD THAT:- After considering the rival submissions, we do not find any infirmity to interfere with the Orders of the Ld. CIT(A) in deleting the addition. Since the existing unit of assessee have been repaired and no new asset has come into existence, therefore, the Ld. CIT(A) on verification of bills and vouchers, correctly held that same are revenue expenditure in nature. This Ground of appeal of Revenue is dismissed. Capital receipt - Subsidy in the form of excise duty refund - HELD THAT:- The assessee has referred to Notification issued for New Industrial Policy in which the Government of Jammu & Kashmir has requested for special package for development of industries in the State. On the lines the industrial policy of the State Government was also notified by the Central Government. Thus, the assessee received the subsidy in the form of excise duty refund for development of industry and generation of employment for new units or making substantial expansion. Therefore, purpose test is satisfied in the case of the assessee for the purpose of grant of subsidy for setting-up industrial unit in the State of Jammu and Kashmir. The Ld. CIT(A) correctly followed the decision of Hon’ble Supreme Court in the case of Pooni Sugars & Chemicals Ltd. [2008 (9) TMI 14 - SUPREME COURT] and in the case of Shree Balaji Alloys vs., Commissioner of Income Tax [2011 (1) TMI 394 - JAMMU AND KASHMIR HIGH COURT] in which similar Notification have been considered and held Excise refund and interest subsidy received by the assessees in pursuance of the incentives announced and sanctioned vide Government of India, Ministry of Commerce and Industry's Office Memorandum dt. 14th June, 2002 and Central Excise Notification Nos. 56 and 57 dt. 14th Nov., 2002 and other notifications issued on the subject, pertaining to the Industrial Policy for the State of Jammu & Kashmir, is capital receipt.
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