Excise Incentive Treated as Capital Receipt Because Purpose Was Industrial Development

Balaji Powertronics Vs DCIT (ITAT Delhi) Excise-Duty Waiver Is Capital Receipt; TP Adjustments Must Exclude Excise & CST— Backward-Area Incentives Cannot Inflate Margins—TP Reworked Delhi Tribunal dealt with extensive TP adjustments & additional claim that excise-duty exemption for the Himachal Pradesh 80-IC unit was a capital receipt. Assessee manufactured UPS, inverters & stabilizers in a backward-area unit enjoying excise-duty waiver of 12.50% & CST waiver of 2%. DRP had confirmed TP adjustment of ₹21.89 crore without granting margin adjustments for backward-area incen...