2008 (6) TMI 344

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....follows : "1. Whether in the facts and the circumstances of the case, the Tribunal was right in holding that the excise duty and sales tax collection does not form part of the turnover, for the purpose of calculation of deduction under section 80HHC ? 2. Whether in the facts and the circumstances of the case, the Tribunal was right in deleting the addition of Rs. 15,00,000 representing windmill subsidy on the ground that it is a capital receipt ? 3. Whether the Tribunal was right in treating the subsidy as a capital receipt but not reducing it from the cost of the windmills to work out the value for calculation of depreciation ?" 2. The facts of the case are as follows : 3. The assessee is a closely held industrial company en....

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....sfied with the order of the Commissioner of Income-tax (Appeals), the Revenue filed appeals to the Tribunal. The Tribunal dismissed the appeals by upholding the order passed by the Commissioner of Income-tax (Appeals). As against the said order, the present tax case appeals are filed. 4. We heard the argument of the learned counsel appearing for the Revenue. 5. The first question of law is no more res integra and it has been finally decided by the Supreme Court against the Revenue in the case of CIT v. Lakshmi Machine Works reported in [2007] 290 ITR 667, wherein the Supreme Court has held that (headnote) "section 80HHC of the Income-tax Act, 1961, is a beneficial section. It was intended to provide incentive to promote exports. The i....