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IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH
JAGMOHAN BANSAL, AMARINDER SINGH GREWAL
Vardhman Textiles Ltd. – Appellant
Versus
Commissioner Of Income Tax – Respondent
JUDGMENT :
JAGMOHAN BANSAL, J.
1. As common issues are involved in the captioned appeals, with the consent of both sides, the same are hereby disposed of by this common order. For the sake of brevity and convenience, facts are borrowed from ITA-517-2008.
2. The appellant through instant appeal under Section 260A of the Income Tax Act, 1961 (for short ‘1961 Act’) is seeking setting aside of order dated 25.01.2008 passed by Income Tax Appellate Tribunal, Chandigarh (for short ‘ITAT’) for the Assessment Year 2000-2001.
3. The appeal was admitted on 05.01.2015 to adjudicate following questions of law:-
i. The nature of sales tax subsidy/exemption granted under the relevant Industrial Policy of the State Government?
ii. Whether the assessee is an 100% export oriented unit entitled to exemption as per Section 10 B of the Income Tax Act?
iii. If answer to question No. 2 is in the affirmative whether the assessee would be entitled to assessment of income under Section 80 HHC of the Income Tax Act?
iv. Whether sale of an import licence falls within the purview of the provisions of Section 80l of the Act?
4. Learned Senior Counsel for the appellant submits that questions No.3 and 4 already stand ans
The classification of sales tax incentives under state schemes hinges on the purpose of the subsidy, determining whether they constitute capital or revenue receipts.
Excise duty exemptions granted for industrial development are capital receipts, not subject to taxation under normal provisions or included in MAT calculations.
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