Excise duty refund under Incentive Scheme 2001 is capital receipt: ITAT Delhi

DCIT Vs Jindal Saw Ltd (ITAT Delhi)

ITAT Delhi by applying purpose test held that excise duty refund under Incentive Scheme 2001 received by company is not liable to tax as it is in the nature of capital receipt.

Facts- The assessee is in the business of manufacture of pipes used in supply of oil / gas and water pipelines, having plants at various locations ie. Kosi, Mundra, Nashik apart from a stainless steel cold rolling plant. It has got an Export Oriented Unit (EOU) at Mundra since 25.11.2000 and an overseas branch in United States of America (USA) whose

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