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Issues involved: Determination of the nature of amounts received as subsidy under West Bengal Industrial Promotion Assistance Scheme - whether capital or revenue in nature.
Summary: Issue 1: Nature of subsidy received under the scheme The appeal was filed by the Revenue against the Income-tax Appellate Tribunal's order dismissing the appeal related to assessment orders for the years 2000-01, 2005-06, and 2006-07. The main issue was whether the amounts received by the assessee as subsidy under the West Bengal Industrial Promotion Assistance Scheme were of capital or revenue nature. The Tribunal, based on its decision in a previous case, held the subsidy to be capital in nature and not liable to tax. Decision: After considering the arguments presented by the appellant's advocate and reviewing the case law, the High Court found that a previous decision of the same Tribunal, affirmed by the Court, had established that the subsidy under the scheme was indeed capital in nature and not taxable. As there was no new substantial legal question involved, the appeal was dismissed summarily. This judgment clarifies the treatment of subsidies received under the mentioned scheme, confirming their capital nature and non-taxability based on established legal precedent.
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