CIT v. Tripti Menthol Industries

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The Tax Publishers2013 TaxPub(DT) 2226 (Guj-HC) : (2013) 053 (I) ITCL 0409 : (2013) 217 TAXMAN 0102 Income Tax Act, 1961 --IncomeChargeability Excise duty refund--The issue arose as to whether excise duty refund received by assessee in terms of the new industrial policy, for creation of such industrial atmosphere and environment, which would provide additional permanent source of employment to the unemployed in the State, was a capital receipt and not liable to tax. *Held:* Excise duty was refunded with the object of creating avenues for perpetual employment to eradicate the social problem of unemployment in the State by accelerated industrial development, therefore, it was a capital receipt and not liable to tax. Income Tax Act, 1961 Section 4 In the Gujarat High Court Akil Kureshi & Sonia Gokani, J.J. CIT v. Tripti Menthol Industries Tax Appeal No. 915 of 2012 7 May, 2013 Appellant by : Mauna M. Bhatt ORDER *Sonia Gokani, J. 'Aggrieved by the order of the Income Tax Appellate Tribunal dated 22-06-2012, this tax appeal is preferred under section 260F of the Income Tax Act (the Act hereinafter) proposing following questions of law for our consideration : '1. Whether the Appellate Tribunal has substantially erred in upholding the decision of Commissioner (Appeals) in holding that 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 judgment of Honble High Court of Jammu & Kashmir in the case of Shree Balaji Alloys 2011 TaxPub(DT) 882 (J&K-HC) : (2011) 333 ITR 335 (J&K-HC)* ignoring the fact that the said receipts are not earned from manufacturing activity? SUBSCRIBE FOR FULL CONTENT

The Tax Publishers2013 TaxPub(DT) 2226 (Guj-HC) : (2013) 053 (I) ITCL 0409 : (2013) 217 TAXMAN 0102

Income Tax Act, 1961

--IncomeChargeability Excise duty refund--The issue arose as to whether excise duty refund received by assessee in terms of the new industrial policy, for creation of such industrial atmosphere and environment, which would provide additional permanent source of employment to the unemployed in the State, was a capital receipt and not liable to tax. Held: Excise duty was refunded with the object of creating avenues for perpetual employment to eradicate the social problem of unemployment in the State by accelerated industrial development, therefore, it was a capital receipt and not liable to tax.

Income Tax Act, 1961 Section 4

In the Gujarat High Court

Akil Kureshi & Sonia Gokani, J.J.

CIT v. Tripti Menthol Industries

Tax Appeal No. 915 of 2012

7 May, 2013

Appellant by : Mauna M. Bhatt

ORDER

Sonia Gokani, J.

'Aggrieved by the order of the Income Tax Appellate Tribunal dated 22-06-2012, this tax appeal is preferred under section 260F of the Income Tax Act (the Act hereinafter) proposing following questions of law for our consideration :

'1. Whether the Appellate Tribunal has substantially erred in upholding the decision of Commissioner (Appeals) in holding that 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 judgment of Honble High Court of Jammu & Kashmir in the case of Shree Balaji Alloys 2011 TaxPub(DT) 882 (J&K-HC) : (2011) 333 ITR 335 (J&K-HC) ignoring the fact that the said receipts are not earned from manufacturing activity?