Dismissing the appeal, that the Tribunal had considered and adjudicated the same issue in the assessee’s own case for the assessment year 1995-96. It held that the purpose of the subsidy scheme was to attract people to invest and take part in industrialization of certain areas in the State. The Tribunal held that if the object of the scheme was to enable the assessee to set up a new unit or to expand the unit the receipt of subsidy was on capital account and that this was the case with the assessee as the U. P. Government subsidy scheme was for enabling the assessee to expand or modernize its existing unit. The sales tax subsidy received by the assessee being a capital receipt is not taxable. (AY.1999-2000 to 2003-04)