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. Thus, the drawback of excise and custom duties would also be the capital receipts which would reduce the capitalized cost of the project. Facts of the case: The assessee company was engaged in execution of a project of setting up a therma...