2013 (7) TMI 763

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....the amount of Rs. 1,09,85,482/- received by the assessee on account of Excise Duty Refund is a capital receipt and not liable to tax under the Income Tax Act, by relying on the judgement of Hon'ble High Court of Jammu & Kashmir in the case of Shree Balaji Alloys [333 ITR 335] ignoring the fact that the said receipts are not earned from manufacturing activity? 2. Whether the Appellate Tribunal has substantially erred in not appreciating the judgements of Hon'ble Supreme Court of India in the case of Sawhney Steel and Press Ltd. [228 ITR 253], wherein it wash led that such receipt to be the revenue receipt in as much as in that case payments were made only after the industries had been set up and payments were not made for purpose of setting ....

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....al units, in terms of the new industrial policy, for accelerated industrial development in the State, for creation of such industrial atmosphere and environment in the State, for creation of such industrial atmosphere and environment, which would provide additional permanent source of employment to the unemployed in the State of Jammu and Kashmir, were in fact, in the nature of creation of new assets of industrial atmosphere and environment, having the potential of employment generation to achieve a social object. Such incentives, designed to achieve public purpose, cannot, by any stretch of reasoning, be construed as production or operational incentives for the benefit of assessees alone. 32. Thus, looking to the purpose, of eradication....