https://www.taxtmi.com/caselaws?id=765171 Excise duty refund granted under an industrial incentive scheme for units in Kutch was treated as a capital receipt because the scheme's object was to promote industrial development, fresh investment and employment generation after the earthquake. Applying the purpose test, the character of the receipt depended on the object for which the incentive was given, not on the fact that duty was first paid and later refunded through the prescribed mechanism. The refund was therefore held to retain the nature of a capital incentive and was not taxable as income. en-us Fri, 24 Jan 2025 00:00:00 +0530 Mon, 27 Jan 2025 08:40:02 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=765171 Excise duty refund granted under an industrial incentive scheme for units in Kutch was treated as a capital receipt because the scheme's object was to promote industrial development, fresh investment and employment generation after the earthquake. Applying the purpose test, the character of the receipt depended on the object for which the incentive was given, not on the fact that duty was first paid and later refunded through the prescribed mechanism. The refund was therefore held to retain the nature of a capital incentive and was not taxable as income. Case-Laws Income Tax Fri, 24 Jan 2025 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=765171