Scheme, 2005 as capital receipt
and not revenue receipt in relevant assessment year 2010-11 and not to
include the aforesaid receipts in Book Profit ... incentives 'Interest subsidy' and 'Power subsidy' is a 'capital receipt' and does
not fall within the definition
holding the sales tax
subsidy as capital receipt in nature.
ii) Whether on the facts and in the circumstances of the case
the decision ... Ponni Sugar and Chemicals Ltd. and treating the sales
tax subsidy as capital receipts in nature was wrongly
followed despite the observation
receipt would be a capit al
receipt . Therefo re, th e object for which subsidy is given determines
the nature of the subsidy ... assessee for exemption on account of sales tax
subsidy being capital receipt as made by the assessee for the first time
before
Self Cenvat Credit) amounting to Rs.99,11,460/- is a
Capital Receipt / Subsidy not liable to tax under the provisions of Income ... Self Cenvat Credit) amounting to Rs.99,11,460/- is a
Capital Receipt / Subsidy not includible in the determination of total income
u/s 115JB
holding the sales tax subsidy as capital receipts in nature.
2
iv) Whether on the facts and circumstances of the case ... erred in treating the sales tax subsidy as capital receipts in nature despite the
decision of Hon'ble Delhi High Court in the case
same as revenue receipts , while in the opinion of Ld. CIT(A) , these
receipts were in the nature of capital receipts not exigible to income ... cent of the. capital
investment calculated on the basis of the quantum
of investment in capital and, therefore, receipt of
such subsidy was on capital
revenue receipts had taken an additional point
by way of an alternative observation that in case, the said
receipts are treated as capital receipts, then ... cent of the. capital investment
calculated on the basis of the quantum of investment
in capital and, therefore, receipt of such subsidy was
on capital
taken additional ground pertaining to claim of
Excise Duty subsidy and interest subsidy as capital receipt which was
wrongly treated as revenue receipt. Admission ... assessee on the ground of Excise Duty subsidy
and interest subsidy as capital receipt is hereby allowed.
25. Regarding the claim of education cess
being
treated as capital subsidies. However, the assessee was seen not to have reduced the
subsidy received, being capital subsidies, while determining the actual costs ... remission is in
the nature of a capital receipt. According to the ld. AO therefore such capital subsidy
was required to be reduced from
seen as a capital
subsidy and has to be regarded, as such, as a capital receipt and not a revenue
receipt.
Accordingly ... seen as a
capital subsidy and has to be regarded, as such, as a capital receipt and not a
revenue receipt. Therefore, we direct
