The assessee, in 2003, had set up pipe coating unit at Mundra, Gujarat. Thereafter, in 2005, the assessee also set up another unit for pipe manufacturing at Mundra, Gujarat. The said new units had been set up in compliance with the relevant Notifications within the stipulated time limits therein, and the Certificate issued by the Customs and Central Excise, Ahmedabad, certifying that the said new units have been established during the period prescribed in the said Notifications. The assessee received excise duty refund of Rs 163,15,661/-, which was offered to tax as a revenue receipt in the return of income and assessed as such by the AO. The CIT(A) upheld the order of the AO in treating the excise duty refund received by the assessee as a revenue receipt. On appeal, ITAT held that the excise duty refund received by assessee under an incentive scheme issued by the Central Government was a capital receipt not chargeable to tax. The appeal was allowed. [AY. 2004-05]