TMI Blog2019 (6) TMI 1657X X X X Extracts X X X X X X X X Extracts X X X X ..... purpose of attracting capital investment and to encourage setting up / expansion of existing units. Thus the object / purposes of the subsidy was for the purposes of encouraging capital investments in the State of Bihar. Consequently the impugned order holds that subsidy would be on Capital account and could not be considered to be on Revenue account. In fact this issue about the object/purpose of the subsidy deciding its character as revenue or capital is no longer res integra in view of the decision of the Supreme Court in CIT, Madras v/s. Ponni Sugars Chemicals Ltd. [ 2008 (9) TMI 14 - SUPREME COURT] Addition made to the book profit on account of excess depreciation and subsidy received by way of reimbursement of commercial tax ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... CIT(A) in directing the Assessing Officer to delete the addition on account of excess depreciation claimed by the assessee? (ii) Whether on the facts and in the circumstances of the case and in law, the ITAT was justified in holding that capital subsidy received as excise duty reimbursement is not a revenue receipt? (iii) Whether on the facts and in the circumstances of the case and in law, the ITAT was justified in upholding the order of the CIT(A) in directing the Assessing Officer to delete the addition made to the book profit on account of excess depreciation and subsidy received by way of reimbursement of commercial tax (VAT)? 3. In so far as Question No. (I) is concerned, we notice that similar issue had come up for consid ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... est has been correctly applied by the Tribunal in accordance with the above decisions. (c) In the above view, question no.(i) as proposed does not give rise to any substantial question of law. Thus not entertained. 4. Regarding question no. (ii):- (a) The issue raised in this question is consequential to question no.(i). We have already held that the subsidy received by the respondent - assessee from the State of Bihar was in the nature of capital receipt. Hence the same cannot be added to arrive at book profits of the respondent - assessee under Section 115J of the Act. (b) However, it is pertinent to note that the question as proposed also seeks addition to book profits on account of excess depreciation along with subsidy rece ..... X X X X Extracts X X X X X X X X Extracts X X X X
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