The sales tax remission receipt by the assessee is covered by the West Bengal Incentive Scheme, 1999. The Scheme can either defer the sales tax payment or provide remission of the Sales tax on the sale of finished goods. The Tribunal, following the decision of the Supreme Court in the case of CIT v. Ponni Sugar & Chemicals Ltd. (2008) 306 ITR 392 (SC), noted that the object for which the subsidy/assistance is given determines the nature of the incentive subsidy, and the mechanism is irrelevant. In the present case, once the object of subsidy is to industrialize the state, it is capital receipt.  (AY. 2003-04)