COMMISSIONER OF INCOME TAX Vs. TRIPTI MENTHOL INDUSTRIES

JUDGEMENT

(1.) Aggrieved by the order of the Income-tax Appellate Tribunal dated 22-06-2012, this tax appeal is preferred under Section 260F of the Income-tax Act ('the Act' hereinafter) proposing following questions of law for our consideration:

(2.) As can be noted from the material on the record, the Tribunal has sought to rely upon the decision of the High Court of Jammu and Kashmir followed in case of this very assessee for the assessment year 2007-08. In earlier years the Tribunal relied on the decision of Jammu and Kashmir High Court in case of Shree Balaji Alloys v. CIT, 2011 333 ITR 335 wherein the Court has held that excise duty refund received is in the nature of capital receipt and is not exigible to the tax. It would be apt to reproduce some of the relevant observations made by the High Court:

(3.) Against such decision of the Tribunal, based on the ratio of the High Court of Jammu and Kashmir given in the case of this very assessee in the earlier assessment year, no other material is brought on the record for the Court to give any contrary findings. Under the circumstances, we hold such refund as the capital receipt not exigible to the tax when the Tribunal on a detailed examination of such is has held in favour of the assessee and against the department. Tax appeal, consequently is dismissed.