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2022 (6) TMI 1066 - AT - Income TaxNature of subsidy receipts - capital or revenue receipts - subsidy received on account of excise duty refund (excise roll back) - Subsidy receipt in pursuance of the incentives announced and sanctioned vide Government of India, Ministry of Commerce and Industry and Central Excise Notification - HELD THAT:- Giving thoughtful consideration to the matter on record it can be observed that in assessee’s own case for assessment year 2013-14 a Coordinate bench decision in M/s. Crystal Crop Protection Pvt. Ltd. [2019 (12) TMI 980 - ITAT DELHI] as relied which in turn had further relied the judgment of Hon’ble Jammu and Kashmir High Court in CIT vs. Shree Balaji Alloys [2011 (1) TMI 394 - JAMMU AND KASHMIR HIGH COURT] which has been further sustained with Hon’ble Apex Court [2011 (11) TMI 712 - SC ORDER] - The cumulative effect of same is that excise duty subsidy and interest subsidies given in pursuant of new industrial policy were held to be capital receipts. No distinction, as attempted by Ld. AO, can be drawn on the basis that as earlier income was subject to benefit of weighed deduction @ 100% of the profits derived from undertaking which no more was available, that would change the nature of receipt to revenue instead of Capital. - Decided against revenue.
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