Refund of excise and custom duties on Purchase of Raw Material and Capital Equipment used in Capital WIP is Capital Receipt

Brief of the case:

The Hon’ble Delhi High Court in the case of Maithon Power Ltd. vs. CIT concluded that:

• The expenditure incurred to set up operations forms the part of capital work in progress and thus, the subsequent reimbursement of any part thereof would be a capital receipt which will get reduced from the amount capitalized under the capital WIP.

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