Dismissing the appeal the Court held that excise duty exemption purpose test formulated by Supreme Court Excise duty exemption granted for purpose of industrialisation and generation of employment in States is capital receipt. Excise duty exemption availed being in nature of capital receipt and not chargeable to tax under normal provisions cannot be added in book profit. (AY. 2014-15)
PCIT v. Greenply Industries Ltd (2025) 476 ITR 347 /304 Taxman 192 (Gauhati)(HC)
S. 4 : Charge of income-tax-Capital or revenue-Excise duty exemption Purpose test formulated by Supreme Court Excise duty exemption granted for purpose of industrialisation and generation of employment in States-Excise duty exemption capital receipt-Book profit-Excise duty exemption availed being in nature of capital receipt and not chargeable to tax under normal provisions cannot be added in book profit. [S.115JB]