Excise duty/Interest subsidy given in pursuant of industrial policy is capital receipt

ACIT Vs Modern Papers (ITAT Delhi) 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. vs. DCIT dated 19.12.2019 in ITA no. 1539/Del/2016 was relied which in turn had further relied the judgment of Hon’ble Jammu and Kashmir High Court in CIT vs. Shree Balaji Alloys CIT 333 ITR 335 which has been further sustained with Hon’ble Apex Court. 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. N...