Excise Duty Refund Under Industrial Promotion Scheme Is not taxable: ITAT Delhi

Jindal Saw Ltd. Vs DCIT (ITAT Delhi)

Income Tax Appellate Tribunal (ITAT), Delhi, has ruled in Jindal Saw Ltd. vs DCIT that excise duty refunds received under a government incentive scheme are capital receipts and hence, not liable to income tax. The dispute centered on Assessment Year 2004-05, where the Assessing Officer had treated the refund as a revenue receipt. The assessee challenged this, citing earlier ITAT decisions in its own favour for Assessment Years 2005-06 and 2006-07.

The Tribunal relied heavily on Notification No. 39/2001 dated 31.07.2001, issued by

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