Shree Balaji Alloys v. CIT

333 ITR 335Reported decision2011#345 most cited
249

judgments rely on this decision, according to BharatTax’s citation analysis of 367,154 Indian tax judgments — from 2013 to 2025.

Also referred to as

Shree Balaji Alloys v. CIT · 333 ITR 335 · subsidy classification · capital vs revenue subsidy · industrial policy objectives · terms and conditions of scheme · section 2(24)(xviii) · section 80IB(4) · section 115JB · section 43(1) · initial assessment year · book profits

Also reported as

198 Taxmann 1229 Taxmann.com 255

Sections most often in play

Section 153ASection 115JBSection 14ASection 139(5)Section 147Section 148Section 139(1)Section 143(3)

Issues it is cited on

section 11bsection 80ib(4)section 2(24)(xviii)initial assessment yearminimum alternate taxsection 115jasection 80hhcsection 42section 32(1)(iia)section 43(1)section 80hhbook profits

Judgments citing Shree Balaji Alloys v. CIT

M/S Greencone Environs Pvt. Ltd., Chandigarh vs. DCIT, C-1(1), Chandigarh

The appeal of the assessee is treated as allowed for statistical

ITA 1602/CHANDI/2017[2008-09]Status: DisposedITAT Chandigarh25 Nov 2019AY 2008-09

Bench: Shri Sanjay Garg & Ms. Annapurna Guptaआयकर अपील सं./ Ita No. 1602/Chd/2017 "नधा"रण वष" / Assessment Year : 2008-09 M/S Greencone Environs Pvt The Dcit, Circle 1(1), बनाम Chandigarh Ltd., Sco 18-19, First Floor, Sector 8C Chandigarh "थायी लेखा सं./Pan No: Aaccg1175D अपीलाथ"/Appellant ""यथ"/Respondent

For Appellant: Shri Rohit GoelFor Respondent: Shri Arvind Sudershan, Sr. DR
Section 250(6)

…f ‘Sahney Steel & Press Works Ltd. Hyderabad Vs. CIT, A.P.-1, Hyderabad Vs. 1997 (7) SCC 765, ‘CIT, Madras Vs. Pooni Sugars and Chemicals Limited’ 2009 (9) SCC 337 and further of the Hon'ble J&K High Court in the case of ‘Shri Balaji Alloys Vs. CIT’ (2011) 333 ITR 335, has held that to gather any of the receipts as to the same are capital or Revenue in nature, ‘purpose test’ is to be applied. If the purpose is for the setting up of new industry, then the receipts are to be considered as capital in nature. However, if the receipts are in the nature of facilitation / helping hand of the trade, the same is const…

ACIT, New Delhi vs. M/S. Dhanuka Agritech Ltd., Delhi

In the result, appeal of the Revenue dismissed

ITA 3837/DEL/2016[2011-12]Status: DisposedITAT Delhi13 Nov 2019AY 2011-12

Bench: Shri Bhavnesh Saini & Shri O.P. Kant

For Appellant: Shri S.S. Nager, C.AFor Respondent: Ms. Rakhi Bimal, Sr. D.R
Section 115JSection 155J

…o set-up a new unit or to expand the existing unit, then the receipt of the subsidy was on capital account.” The assessee also relied upon decision of Hon’ble Jammu & Kashmir High Court in the case of Shree Balaji Alloys vs., Commissioner of Income Tax [2011] 333 ITR 335 (J&K) wherein it was clearly held that “excise duty refund as per the Office Memorandum Dated 14.06.2002 is capital receipt and not chargeable to tax.” The assessee relied upon several decisions also in support of the same contention. It was also submitted that appellate authorities have power to consider the claim of assessee which was not raise…

DCIT, Circle-10(1), Kolkata vs. M/S Indian Oil Petronas (P) Ltd., Kolkata

In the result, the appeal of the revenue is dismissed

ITA 1930/KOL/2016[2010-11]Status: DisposedITAT Kolkata15 Mar 2019AY 2010-11

Bench: Shri A.T. Varkey, Jm & Dr.A.L.Saini, Am D.C.I.T, Cir­10(1), Kolkata Vs. M/S. Indian Oil Petronas Pvt. Ltd. Pan: Aaaci5573R (अपीलाथ" /Assessee) (""यथ" / Respondent) .. Assessee/Revenue By : Shri P.K. Srihari, Cit, Ld. Dr Respondent/Assessee By : Shrid. S Damle, Fca, Ld.Ar सुनवाईक"तार"ख/ Date Of Hearing : 18/12/2018 घोषणाक"तार"ख/Date Of Pronouncement : 15/03/2019 आदेश / O R D E R

For Appellant: ShriD. S Damle, FCA, ld.ARFor Respondent: Shri P.K. Srihari, CIT, ld. DR
Section 143(3)Section 194ISection 2Section 37(1)Section 40

…IN THE INCOME TAX APPELLATE TRIBUNAL “C”, BENCH KOLKATA BEFORE Shri A.T. Varkey, JM & Dr.A.L.Saini, AM D.C.I.T, Cir­10(1), Kolkata Vs. M/s. Indian Oil Petronas Pvt. Ltd. PAN: AAACI5573R (अपीलाथ" /Assessee) (""यथ" / Respondent) .. Assessee/Revenue by : Shri P.K. Srihari, CIT, ld. DR Respondent/Assessee by : ShriD. S Damle, FCA, ld.AR सुनवाईक"तार"ख/ Date of Hearing : 18/12/2018 घोषणाक"तार"ख/Date of Pronouncement : 15/03/2019 आदेश / O R D E R Per Dr. Arjun Lal Saini, AM: The captioned appeal filed by the Revenue, pertaining to assessment year 2010­11, is directed against the orders passed by the Commissioner of Inc…

The DCIT, Circle-2(1)(1), Ahmedabad vs. M/S. Hitachi Home & Life Solutions (India) Ltd., Ahmedabad

In the result, Assessee’s appeal in ITA No

ITA 931/AHD/2016[2010-11]Status: DisposedITAT Ahmedabad04 Mar 2019AY 2010-11

Bench: Shri Rajpal Yadav & Shri Waseem Ahmed

For Appellant: Shri S.N. Soparkar, AdvocateFor Respondent: Shri N.R.Soni, CIT-DR &
Section 80I

…s.2399/Ahd/13, 2286/Ahd/14 & 860/Ahd/16 (Revenue) & 931/Ahd/2016 (by assessee) DCIT vs. Hitachi Home& Life Solutions (I) Ltd. Asst.Years – 2008-09, 2009-10, 2010-11 Hon’ble High Court of Jammu & Kashmir in the case of Shree Balaji Alloys vs. CIT reported in 333 ITR 335, wherein it was held as under: “30. For all what has been said above, the finding of the Tribunal on the first issue that the Excise Duty Refund, Interest Subsidy and Insurance Subsidy were Production Incentives, hence revenue Receipt, cannot be sustained, being against the law laid down by Hon'ble Supreme Court of India in Sahney Steel & Press W…

Hitachi Home & Life Solutions (I) Ltd., Ahmedabad vs. The Dy.Commissioner of Income Tax, Circle-4, Ahmedabad

In the result, Assessee’s appeal in ITA No

ITA 860/AHD/2016[2010-11]Status: DisposedITAT Ahmedabad04 Mar 2019AY 2010-11

Bench: Shri Rajpal Yadav & Shri Waseem Ahmed

For Appellant: Shri S.N. Soparkar, AdvocateFor Respondent: Shri N.R.Soni, CIT-DR &
Section 80I

…s.2399/Ahd/13, 2286/Ahd/14 & 860/Ahd/16 (Revenue) & 931/Ahd/2016 (by assessee) DCIT vs. Hitachi Home& Life Solutions (I) Ltd. Asst.Years – 2008-09, 2009-10, 2010-11 Hon’ble High Court of Jammu & Kashmir in the case of Shree Balaji Alloys vs. CIT reported in 333 ITR 335, wherein it was held as under: “30. For all what has been said above, the finding of the Tribunal on the first issue that the Excise Duty Refund, Interest Subsidy and Insurance Subsidy were Production Incentives, hence revenue Receipt, cannot be sustained, being against the law laid down by Hon'ble Supreme Court of India in Sahney Steel & Press W…

The DCIT, Circle-4, Ahmedabad vs. Hitachi Home & Life Solutions (India) Ltd., Ahmedabad

In the result, Assessee’s appeal in ITA No

ITA 2286/AHD/2014[2009-10]Status: DisposedITAT Ahmedabad04 Mar 2019AY 2009-10

Bench: Shri Rajpal Yadav & Shri Waseem Ahmed

For Appellant: Shri S.N. Soparkar, AdvocateFor Respondent: Shri N.R.Soni, CIT-DR &
Section 80I

…s.2399/Ahd/13, 2286/Ahd/14 & 860/Ahd/16 (Revenue) & 931/Ahd/2016 (by assessee) DCIT vs. Hitachi Home& Life Solutions (I) Ltd. Asst.Years – 2008-09, 2009-10, 2010-11 Hon’ble High Court of Jammu & Kashmir in the case of Shree Balaji Alloys vs. CIT reported in 333 ITR 335, wherein it was held as under: “30. For all what has been said above, the finding of the Tribunal on the first issue that the Excise Duty Refund, Interest Subsidy and Insurance Subsidy were Production Incentives, hence revenue Receipt, cannot be sustained, being against the law laid down by Hon'ble Supreme Court of India in Sahney Steel & Press W…

The DCIT, Circle-4, Ahmedabad vs. Hitachi Home & Life Solution(India) Ltd., Ahmedabad

In the result, Assessee’s appeal in ITA No

ITA 2399/AHD/2013[2008-09]Status: DisposedITAT Ahmedabad04 Mar 2019AY 2008-09

Bench: Shri Rajpal Yadav & Shri Waseem Ahmed

For Appellant: Shri S.N. Soparkar, AdvocateFor Respondent: Shri N.R.Soni, CIT-DR &
Section 80I

…s.2399/Ahd/13, 2286/Ahd/14 & 860/Ahd/16 (Revenue) & 931/Ahd/2016 (by assessee) DCIT vs. Hitachi Home& Life Solutions (I) Ltd. Asst.Years – 2008-09, 2009-10, 2010-11 Hon’ble High Court of Jammu & Kashmir in the case of Shree Balaji Alloys vs. CIT reported in 333 ITR 335, wherein it was held as under: “30. For all what has been said above, the finding of the Tribunal on the first issue that the Excise Duty Refund, Interest Subsidy and Insurance Subsidy were Production Incentives, hence revenue Receipt, cannot be sustained, being against the law laid down by Hon'ble Supreme Court of India in Sahney Steel & Press W…

Pepsico India Holdings Pvt. Ltd., Gurgaon vs. ACIT, Central Circle- 7, New Delhi

In the result, all the appeals of the assessee are treated as partly allowed

ITA 6582/DEL/2017[2013-14]Status: DisposedITAT Delhi03 Dec 2018AY 2013-14

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Respondent: Mr. H.K. Chaudhary, CIT-DR
Section 115JSection 145ASection 271(1)(c)

…dy was equivalent to 90 per cent of the sales tax paid by the beneficiary did not imply that the same was for operational purposes. Lastly, he placed reliance on the decision of the Hon’ble High Court of Jammu and Kashmir in Shree Balaji Alloys vs. CIT [2011] 333 ITR 335 (J&K) and pointed out that the same had now been affirmed by the Hon’ble Supreme Court. He placed reliance on the following passage from the decision of the Hon’ble High Court: “Mere making of additional provision in the Scheme that incentives would become available to the industrial units from the date of commencement of the commercial productio…

M/S Pepsico India Holdings Pvt. Ltd., Gurgaon vs. ACIT, New Delhi

In the result, all the appeals of the assessee are treated as partly allowed

ITA 4518/DEL/2016[2011-12]Status: DisposedITAT Delhi03 Dec 2018AY 2011-12

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Respondent: Mr. H.K. Chaudhary, CIT-DR
Section 115JSection 145ASection 271(1)(c)

…dy was equivalent to 90 per cent of the sales tax paid by the beneficiary did not imply that the same was for operational purposes. Lastly, he placed reliance on the decision of the Hon’ble High Court of Jammu and Kashmir in Shree Balaji Alloys vs. CIT [2011] 333 ITR 335 (J&K) and pointed out that the same had now been affirmed by the Hon’ble Supreme Court. He placed reliance on the following passage from the decision of the Hon’ble High Court: “Mere making of additional provision in the Scheme that incentives would become available to the industrial units from the date of commencement of the commercial productio…

M/S Pepsico India Holdings Pvt. Ltd., Gurgaon vs. ACIT, New Delhi

In the result, all the appeals of the assessee are treated as partly allowed

ITA 4517/DEL/2016[2010-11]Status: DisposedITAT Delhi03 Dec 2018AY 2010-11

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Respondent: Mr. H.K. Chaudhary, CIT-DR
Section 115JSection 145ASection 271(1)(c)

…dy was equivalent to 90 per cent of the sales tax paid by the beneficiary did not imply that the same was for operational purposes. Lastly, he placed reliance on the decision of the Hon’ble High Court of Jammu and Kashmir in Shree Balaji Alloys vs. CIT [2011] 333 ITR 335 (J&K) and pointed out that the same had now been affirmed by the Hon’ble Supreme Court. He placed reliance on the following passage from the decision of the Hon’ble High Court: “Mere making of additional provision in the Scheme that incentives would become available to the industrial units from the date of commencement of the commercial productio…

M/S Pepsico India Holdings Pvt. Ltd., Gurgaon vs. ACIT, New Delhi

In the result, all the appeals of the assessee are treated as partly allowed

ITA 4516/DEL/2016[2010-11]Status: DisposedITAT Delhi03 Dec 2018AY 2010-11

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Respondent: Mr. H.K. Chaudhary, CIT-DR
Section 115JSection 145ASection 271(1)(c)

…dy was equivalent to 90 per cent of the sales tax paid by the beneficiary did not imply that the same was for operational purposes. Lastly, he placed reliance on the decision of the Hon’ble High Court of Jammu and Kashmir in Shree Balaji Alloys vs. CIT [2011] 333 ITR 335 (J&K) and pointed out that the same had now been affirmed by the Hon’ble Supreme Court. He placed reliance on the following passage from the decision of the Hon’ble High Court: “Mere making of additional provision in the Scheme that incentives would become available to the industrial units from the date of commencement of the commercial productio…

M/S. Pepsi Foods Limited, Gurgaon vs. ACIT, New Delhi

In the result, all the appeals of the assessee are treated as partly allowed

ITA 1044/DEL/2014[2009-10]Status: DisposedITAT Delhi03 Dec 2018AY 2009-10

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Respondent: Mr. H.K. Chaudhary, CIT-DR
Section 115JSection 145ASection 271(1)(c)

…dy was equivalent to 90 per cent of the sales tax paid by the beneficiary did not imply that the same was for operational purposes. Lastly, he placed reliance on the decision of the Hon’ble High Court of Jammu and Kashmir in Shree Balaji Alloys vs. CIT [2011] 333 ITR 335 (J&K) and pointed out that the same had now been affirmed by the Hon’ble Supreme Court. He placed reliance on the following passage from the decision of the Hon’ble High Court: “Mere making of additional provision in the Scheme that incentives would become available to the industrial units from the date of commencement of the commercial productio…

Pepsi Foods Pvt. Ltd., Gurgaon vs. DCIT, New Delhi

In the result, all the appeals of the assessee are treated as partly allowed

ITA 2511/DEL/2013[2008-09]Status: DisposedITAT Delhi03 Dec 2018AY 2008-09

Bench: Shri Amit Shukla & Shri Prashant Maharishi

For Respondent: Mr. H.K. Chaudhary, CIT-DR
Section 115JSection 145ASection 271(1)(c)

…dy was equivalent to 90 per cent of the sales tax paid by the beneficiary did not imply that the same was for operational purposes. Lastly, he placed reliance on the decision of the Hon’ble High Court of Jammu and Kashmir in Shree Balaji Alloys vs. CIT [2011] 333 ITR 335 (J&K) and pointed out that the same had now been affirmed by the Hon’ble Supreme Court. He placed reliance on the following passage from the decision of the Hon’ble High Court: “Mere making of additional provision in the Scheme that incentives would become available to the industrial units from the date of commencement of the commercial productio…

ACIT, Sangrur vs. M/S H.M.Steels Ltd, Dirba

In the result, this appeal of the Revenue is partly allowed

ITA 1101/CHANDI/2016[2011-12]Status: DisposedITAT Chandigarh05 Nov 2018AY 2011-12

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumarआयकर अपील सं Ita No. 366/Chd/2013 "नधा"रण वष" / Assessment Year : 2008-09

For Appellant: Sh. N.K.Garg, AdvocateFor Respondent: Smt. Chanderkanta, Sr.DR
Section 234BSection 80Section 80ISection 8O

…f ‘Sahney Steel & Press Works Ltd. Hyderabad Vs. CIT, A.P.-1, Hyderabad’ : 1997 (7) SCC 765, ‘CIT, Madras Vs. Pooni Sugars and Chemicals Limited’ 2009 (9) SCC 337 and further of the Hon'ble J&K High Court in the case of ‘Shri Balaji Alloys Vs. CIT’ (2011) 333 ITR 335, has held that to hold whether any of such receipts are capital or Revenue in nature, ‘purpose test’ is to be applied. If the purpose is for the setting up of new industry, then the receipts are to be considered as capital in nature. However, if the receipts are in the nature of facilitation / helping hand to the trade, the same are to be co…

H.M. Steels Ltd., Sangrur vs. ACIT, Sangrur

In the result, this appeal of the Revenue is partly allowed

ITA 590/CHANDI/2014[2010-11]Status: DisposedITAT Chandigarh05 Nov 2018AY 2010-11

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumarआयकर अपील सं Ita No. 366/Chd/2013 "नधा"रण वष" / Assessment Year : 2008-09

For Appellant: Sh. N.K.Garg, AdvocateFor Respondent: Smt. Chanderkanta, Sr.DR
Section 234BSection 80Section 80ISection 8O

…f ‘Sahney Steel & Press Works Ltd. Hyderabad Vs. CIT, A.P.-1, Hyderabad’ : 1997 (7) SCC 765, ‘CIT, Madras Vs. Pooni Sugars and Chemicals Limited’ 2009 (9) SCC 337 and further of the Hon'ble J&K High Court in the case of ‘Shri Balaji Alloys Vs. CIT’ (2011) 333 ITR 335, has held that to hold whether any of such receipts are capital or Revenue in nature, ‘purpose test’ is to be applied. If the purpose is for the setting up of new industry, then the receipts are to be considered as capital in nature. However, if the receipts are in the nature of facilitation / helping hand to the trade, the same are to be co…

H.M. Steels Ltd., Sangrur vs. ACIT, Sangrur

In the result, this appeal of the Revenue is partly allowed

ITA 589/CHANDI/2014[2009-10]Status: DisposedITAT Chandigarh05 Nov 2018AY 2009-10

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumarआयकर अपील सं Ita No. 366/Chd/2013 "नधा"रण वष" / Assessment Year : 2008-09

For Appellant: Sh. N.K.Garg, AdvocateFor Respondent: Smt. Chanderkanta, Sr.DR
Section 234BSection 80Section 80ISection 8O

…f ‘Sahney Steel & Press Works Ltd. Hyderabad Vs. CIT, A.P.-1, Hyderabad’ : 1997 (7) SCC 765, ‘CIT, Madras Vs. Pooni Sugars and Chemicals Limited’ 2009 (9) SCC 337 and further of the Hon'ble J&K High Court in the case of ‘Shri Balaji Alloys Vs. CIT’ (2011) 333 ITR 335, has held that to hold whether any of such receipts are capital or Revenue in nature, ‘purpose test’ is to be applied. If the purpose is for the setting up of new industry, then the receipts are to be considered as capital in nature. However, if the receipts are in the nature of facilitation / helping hand to the trade, the same are to be co…

DCIT, Sangrur vs. M/S H.M. Steel Ltd., Sangrur

In the result, this appeal of the Revenue is partly allowed

ITA 584/CHANDI/2014[2010-11]Status: DisposedITAT Chandigarh05 Nov 2018AY 2010-11

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumarआयकर अपील सं Ita No. 366/Chd/2013 "नधा"रण वष" / Assessment Year : 2008-09

For Appellant: Sh. N.K.Garg, AdvocateFor Respondent: Smt. Chanderkanta, Sr.DR
Section 234BSection 80Section 80ISection 8O

…f ‘Sahney Steel & Press Works Ltd. Hyderabad Vs. CIT, A.P.-1, Hyderabad’ : 1997 (7) SCC 765, ‘CIT, Madras Vs. Pooni Sugars and Chemicals Limited’ 2009 (9) SCC 337 and further of the Hon'ble J&K High Court in the case of ‘Shri Balaji Alloys Vs. CIT’ (2011) 333 ITR 335, has held that to hold whether any of such receipts are capital or Revenue in nature, ‘purpose test’ is to be applied. If the purpose is for the setting up of new industry, then the receipts are to be considered as capital in nature. However, if the receipts are in the nature of facilitation / helping hand to the trade, the same are to be co…

DCIT, Sangrur vs. M/S H.M. Steel Ltd., Sangrur

In the result, this appeal of the Revenue is partly allowed

ITA 583/CHANDI/2014[2009-10]Status: DisposedITAT Chandigarh05 Nov 2018AY 2009-10

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumarआयकर अपील सं Ita No. 366/Chd/2013 "नधा"रण वष" / Assessment Year : 2008-09

For Appellant: Sh. N.K.Garg, AdvocateFor Respondent: Smt. Chanderkanta, Sr.DR
Section 234BSection 80Section 80ISection 8O

…f ‘Sahney Steel & Press Works Ltd. Hyderabad Vs. CIT, A.P.-1, Hyderabad’ : 1997 (7) SCC 765, ‘CIT, Madras Vs. Pooni Sugars and Chemicals Limited’ 2009 (9) SCC 337 and further of the Hon'ble J&K High Court in the case of ‘Shri Balaji Alloys Vs. CIT’ (2011) 333 ITR 335, has held that to hold whether any of such receipts are capital or Revenue in nature, ‘purpose test’ is to be applied. If the purpose is for the setting up of new industry, then the receipts are to be considered as capital in nature. However, if the receipts are in the nature of facilitation / helping hand to the trade, the same are to be co…

DCIT, Sangrur vs. M/S H.M. Steel Ltd., Sangrur

In the result, this appeal of the Revenue is partly allowed

ITA 585/CHANDI/2013[2008-09]Status: DisposedITAT Chandigarh05 Nov 2018AY 2008-09

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumarआयकर अपील सं Ita No. 366/Chd/2013 "नधा"रण वष" / Assessment Year : 2008-09

For Appellant: Sh. N.K.Garg, AdvocateFor Respondent: Smt. Chanderkanta, Sr.DR
Section 234BSection 80Section 80ISection 8O

…f ‘Sahney Steel & Press Works Ltd. Hyderabad Vs. CIT, A.P.-1, Hyderabad’ : 1997 (7) SCC 765, ‘CIT, Madras Vs. Pooni Sugars and Chemicals Limited’ 2009 (9) SCC 337 and further of the Hon'ble J&K High Court in the case of ‘Shri Balaji Alloys Vs. CIT’ (2011) 333 ITR 335, has held that to hold whether any of such receipts are capital or Revenue in nature, ‘purpose test’ is to be applied. If the purpose is for the setting up of new industry, then the receipts are to be considered as capital in nature. However, if the receipts are in the nature of facilitation / helping hand to the trade, the same are to be co…

M/S H.M. Steel Ltd., Sangrur vs. Addl. CIT, Sangrur

In the result, this appeal of the Revenue is partly allowed

ITA 366/CHANDI/2013[2008-09]Status: DisposedITAT Chandigarh05 Nov 2018AY 2008-09

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumarआयकर अपील सं Ita No. 366/Chd/2013 "नधा"रण वष" / Assessment Year : 2008-09

For Appellant: Sh. N.K.Garg, AdvocateFor Respondent: Smt. Chanderkanta, Sr.DR
Section 234BSection 80Section 80ISection 8O

…f ‘Sahney Steel & Press Works Ltd. Hyderabad Vs. CIT, A.P.-1, Hyderabad’ : 1997 (7) SCC 765, ‘CIT, Madras Vs. Pooni Sugars and Chemicals Limited’ 2009 (9) SCC 337 and further of the Hon'ble J&K High Court in the case of ‘Shri Balaji Alloys Vs. CIT’ (2011) 333 ITR 335, has held that to hold whether any of such receipts are capital or Revenue in nature, ‘purpose test’ is to be applied. If the purpose is for the setting up of new industry, then the receipts are to be considered as capital in nature. However, if the receipts are in the nature of facilitation / helping hand to the trade, the same are to be co…