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2016 (6) TMI 257 - ITAT KOLKATARevision u/s 263 - allowing deduction u/s 80IC - treatment to transport subsidy, Central Insurance subsidy, power subsidy and interest subsidy - Held that:- The Hon’ble Gauhati High Court in the case of CIT vs Meghalaya Steels Ltd. [2013 (7) TMI 175 - GAUHATI HIGH COURT] had decided the issue in favour of the assessee holding that all the mentioned subsidies have to be considered as profits and gains derived from the business of the assessee and therefore have to be considered for the purpose of allowing deduction u/s 80IC of the Act. It was also brought to our notice that the Hon’ble Supreme Court has confirmed the order of Hon’ble Gauhati High Court in the case of CIT vs Meghalaya Steels Ltd. [2016 (3) TMI 375 - SUPREME COURT] We are of the view that the view taken by the AO cannot be considered to be erroneous and prejudicial to the interest of the revenue. Though the CIT has exercised the jurisdiction on the ground that the AO had failed to make proper inquiries before concluding the assessment, we are of the view that in the light of the decision of the Hon’ble Supreme Court, such an inquiry at this stage would be a futile exercise. The decision rendered by the Hon’ble Supreme Court has to be considered as law as it stood at all times and therefore the order of assessment in the present case passed by the AO that was sought to be revised by the CIT u/s.263 of the Act, cannot be considered as erroneous and prejudicial to the interest of the Revenue. - Decided in favour of assessee
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