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TMI Blog2011 (12) TMI 588X X X X Extracts X X X X X X X X Extracts X X X X ..... (Asr)/2011, ITA No. 222(Asr)/2011, ITA No. 223(Asr)/2011, ITA No. 224 225(Asr)/2011, ITA No. 226(Asr)/2011, ITA No. 228(Asr)/2011, ITA No. 229(Asr)/2011, ITA No. 231(Asr)/2011, ITA No. 233(Asr)/2011. These thirty appeals by the Revenue involving common issue were heard together and are being disposed off by this common order for the sake of convenience. 2. The common grounds of appeals are as under:- 1 On the facts and circumstances whether the Ld. CIT(A) was right in allowing relief on account of deduction u/s 80IB on Central Excise Duty refund by relying upon orders of Hon'ble High Court if J K, Jammu which has been delivered not on merits of the issue but holding the receipt to be a capital receipt only because the policy ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... iefly, the grounds No. 1 to 5 revolve around the issue of Excise Duty refund which was claimed as exempt in view of Section 80IB of the Income-tax Act, 1961 (in short the Act ) being allowable to the assessee. The AO has not allowed the claim of the assessee and held that the receipts on account of Excise Duty refund granted in view of Government Notification was not eligible to be considered for the purpose of deduction u/s 80IB of the Act. 4. On appeal, the Ld. CIT(A) following the decision of the Hon'ble Jurisdictional High Court in the case of Shree Balaji Allows v. CIT and Another (2011) 333 ITR 335 (J K) held that the Excise Duty refund is to be treated as capital receipt and not liable to be taxed. Now the Revenue is in app ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the salient features of the new industrial policy, amendments introduced thereto and statutory notification etc. The Hon'ble High Court further discussed the decision of Hon'ble Supreme Court in the case of Sahney Steel and Press Works Ltd (1997) 228 ITR 253 (S.C) and observed as under:- 26 A perusal of the Office Memorandum dated June 14, 2002 indicating new industrial policy and other concessions for the State of Jammu and Kashmir, makes it explicit that the concessions were issued to achieve twin objects viz. (i) acceleration of industrial development in the State of Jammu and Kashmir, which had been found lagging behind in such development, and (ii) generation of employment in the State of Jammu Kashmir. 27 Amendment i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the generation of employment, so, contemplated, was not only casual or temporary; but was on the other hand, of permanent nature. 30 Considered thus, the paramount consideration of the Central Government in providing the incentives to the new industrial units and substantial expansion of the existing units, was the generation of employment through acceleration of industrial development, to deal with the social problem of unemployment in the State, additionally creating opportunities for self-employment, hence a purpose in public interest. 31 In this view of the matter, the incentives provided to the industrial units, in terms of the new industrial policy, for accelerated industrial development in the State, for creation of such indust ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... so that larger public interest of dealing with unemployment in the State, as intended, in terms of the Office Memorandum, was achieved. 34. The other factors, which had weighed with the Tribunal in determine the incentives as production incentives may not be decisive to determining the character of the incentive subsidies, when it is found, as demonstrated in the Office Memorandum, amendment introduced thereto and the statutory notification too that the incentives were provided with the object of creating avenues for perpetual employment, to eradicate the social problem of unemployment in the State by accelerated industrial development. 7. The Hon'ble Jurisdictional High Court concluded as under:- 35 For all what has been sai ..... X X X X Extracts X X X X X X X X Extracts X X X X
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