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2012 (12) TMI 725 - AT - Income TaxDeduction u/s 80IB - Central Excise Duty refund & Interest subsidy - Capital or revenue receipt - Held that:- Following the decision of court in case of Shree Balaji Alloys v. CIT and Another [2011 (1) TMI 394 - JAMMU AND KASHMIR HIGH COURT] the receipt of Central Excise Duty Refund and interest subsidy to be treated as a ‘Capital Receipt’ as against its treatment as ‘Revenue receipt’ by the A.O - Decided in the favour of the assessee. Transport Subsidy – Held that:- Transport subsidy is not derived from the activity of the industrial undertaking though it may be attributable to it and therefore, cannot be said to be treated as part of the profits and gains derived from the industrial undertaking - no deduction is available u/s 80IB on the amount of freight subsidy - order of A.O. is affirmed/confirmed. Treating interest as income derived from industrial undertaking - Held that: - Following the decision of in case of M/s. Pandian Chemicals [2003 (4) TMI 3 - SUPREME COURT] interest cannot be treated as income derived from industrial undertaking for the purpose of computation of deduction u/s 80IB – ground of assessee is dismissed.
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