Excise duty refund and interest subsidy under Industrial Policy (2002-2005) is capital receipt

ACIT Vs M/s Agro Life Science Corporation (ITAT Kolkata) In the present case the amount of excise duty refund and interest subsidy was treated by the AO as revenue receipt subject to tax. The reason given by AO is that the impugned amount was given to assessee after the commencement of commercial Production.  However, the Ld. CIT(A) reversed the order of AO on the ground that on identical facts and circumstances the Hon’ble Jammu & Kashmir High Court in the case of Shree Balaji Alloys (supra) has treated the impugned receipt as capital in nature and accordingly not chargeable to ta...