Relying on the decision of Special Bench in the case of Reliance Industries Ltd. (2004) 88 ITD 273 (SB) (Mum.)(Trib.), and the decision of co-ordinate Bench of the tribunal in the case of Assesse’s group concern, Welspun Steel Ltd. (ITA No. 7630/M/211 dated 18 December 2015), Tribunal held that incentives by way of excise duty refund and sales tax incentives given to assessee to encourage setting up of new industrial unit in area which was devastated by earthquake were capital receipts not exigible to tax. (AY. 2008-09, 2009-10, 2010-11, 2011-12)
Welspun India Ltd. v. Dy. CIT (2019) 69 ITR 617 (Mum.)(Trib.)
S. 4 : Charge of income-tax -Incentives by way of excise duty refund and sales tax – encourage setting up of new industrial unit in area which was devastated by earthquake – Capital receipts not exigible to tax.