Dismissing the SLP of the Revenue the Court held that Tribunal was right in holding that sales tax exemption granted by the Government of Gujarat was a capital receipt exempt from tax instead of a revenue receipt as held by the Assessing Officer. High Court affirmed the order of the Tribunal. (AY. 1999-2000, 2000-01)
CIT v. Gujarat Alkalies and Chemicals Ltd. (2023) 454 ITR 808 (SC) Editorial : CIT v. Gujarat Alkalies and Chemicals Ltd (2015) 372 ITR 237 (Guj)(HC), affirmed. CIT v. Indian Petrochemicals Corporation Ltd (2017) 10 ITR-OL 275 (Guj)(HC), affirmed.
S. 4 : Charge of income-tax-Capital or revenue-Sales tax exemption-Scheme requiring recipient of benefit to utilise substantial portion of subsidy for capital purposes-Capital receipt. [S. 28(i)]