https://www.taxtmi.com/caselaws?id=183072 The Tribunal upheld the CIT(A)'s decision that sales-tax exemptions granted by the Government of Gujarat to the assessee for three assessment years were capital receipts, not revenue receipts. The exemptions were intended to promote capital investment and industrial development in a backward area, specifically for setting up new units and generating employment. The Tribunal emphasized the purpose test and distinguished the incentives from those meant for regular business operations. Consequently, the revenue's appeals were dismissed, affirming the capital nature of the receipts. en-us Fri, 04 Nov 2011 00:00:00 +0530 Fri, 27 May 2016 13:07:57 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=183072 The Tribunal upheld the CIT(A)'s decision that sales-tax exemptions granted by the Government of Gujarat to the assessee for three assessment years were capital receipts, not revenue receipts. The exemptions were intended to promote capital investment and industrial development in a backward area, specifically for setting up new units and generating employment. The Tribunal emphasized the purpose test and distinguished the incentives from those meant for regular business operations. Consequently, the revenue's appeals were dismissed, affirming the capital nature of the receipts. Case-Laws Income Tax Fri, 04 Nov 2011 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=183072