2017 (6) TMI 83

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....transport subsidy and excise refund is entitled to deduct under section 80-IB of the Income Tax Act, 1961. (ii) Whether the revenue earned in disallowed amount, the assesse s claim of the said amount from the income. (iii) The third question which has been raised is in relation to deduction in respect of Rs. 23,922/- which is interest earned on FDR under section 80-IB of Income Tax Act. 3. On the third question in respect of interest, Mr. Z. A. Shah, Sr. Adv. fairly states that assesse would pay the same without prejudice with liberty to raise this plea in appropriate proceedings if required. The same is permitted. The second question of law is not pressed. 4. This leaves us with first question of law which covers th....

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....n 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 of operational incentives for the benefit of assess alone. (27) Thus, looking to the purpose, of eradication of the social problem of unemployment in the State by acceleration of the industrial development and removing backwardness of the area that lagged behind in I....

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....ve, the finding of the Tribunal on the first issue that the Excise Duty Refund, interest subsidy and Insurance subsidy were Production Incentives, hence Revenue Receipt, cannot be sustained, being against the law laid down by Hon'ble Supreme Court of India in Sahney Steel and Ponni Sugars cases( Supra) (31) The finding of the Tribunal that the incentives were Revenue Receipt is, accordingly, set aside holding the incentives to be Capital Receipt in the hands of the assesses. 9. The Court held that excise refund to be capital receipts in the hands of assesses and deduction u/s 80 IB of the Act. This decision was up held by the Hon'ble Supreme Court in Commissioner of Income Tax v. M/S Meghalaya Steels Lld. reported in (2016) 3 19....