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It is pertinent to note that the eligibility of excise duty refund was on account of establishment of new industrial undertaking in the State of Jammu & Kashmir as an incentive to promote industrial activity in the State of Jammu & Kashmir and is in the nature of capital subsidy not liable to tax. Thus, the said excise duty refund has to be excluded from the computation of Section 115JB of the Act as well as it is capital receipt. The decisions relied by the Ld. AR in case of Shri Balaji Alloys (supra) is applicable in the present case. Besides in A.Y. 2006-07 as well as in A.Y. 2007-08 hereinabove, this issue is decided in favour of the assessee by the Tribunal and the facts are identical in the present Assessment Year as well. Therefore, Ground No. 4 and 5 of the assessee’s appeal are allowed.

Shanti Prime Publication Pvt. Ltd.

Sec. 68 of Income Tax Act, 1961—Cash Credit — There was no transaction of sales as well and neither these amounts were refunded to the parties and the CIT(A) submitted that the assessee failed to submit the confirmation certificate from the parties either at the assessment stage or at the appellate stage, thus, the CIT(A) confirmed the additions and it was found that the said sum has already been offered to tax. Since the assessee has already paid tax on the said amount in subsequent year, this addition does not survive  — ULTIMATE FLEXIPACK LTD.  Vs. DEPUTY CIT  [2020] 78 ITR (TRIB) 410 (ITAT-DELHI)

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