Allowing the appeal the Tribunal held that the issue involved in the appeals under consideration relates to the excise duty refund and interest subsidy as capital receipt or revenue receipt, has already been decided by the Jurisdictional High Court in the case of Sh. Balaji Alloys v. CIT  (2011) 333 ITR 335 (J&K)(HC) by holding the Excise Duty Refund and interest subsidy as ‘capital receipt’. The said High Court Judgment was further challenged in the Apex Court and the Apex Court vide its judgment affirmed the view of the High Court, hence, in view of the judgments of Apex Court and Jurisdictional High Court, appeal of the assessee is allowed. (CIT v. Ponni Sugars & Chemicals Ltd. (2008) 306 ITR 392 (SC) and CIT v. Meghalaya Steels Ltd. (2016) 3 SCALE 192 (AY. 2005-06, 2006-07)