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2022 (9) TMI 1329 - HC - Income TaxBenefit of deduction u/s 80IC - whether the refund of excise duty obtained by the respondent/assessee could have been treated as profit from business and the assessee could have been granted the benefit of deduction under section 80IC ? - HELD THAT:- We find that identical issue was decided in the case of Commissioner of Income-tax vs. Meghalaya Steels Ltd. [2010 (9) TMI 679 - GAUHATI HIGH COURT] refund does amount to income in the hands of the assessee, it is a profit or gain directly derived by the assessee from its industrial activity. The payment of Central excise duty has a direct nexus with the manufacturing activity and similarly, the refund of the Central excise duty also has a direct nexus with the manufacturing activity. The issue of payment of Central excise duty would not arise in the absence of any industrial activity. There is, therefore, an inextricable link between the manufacturing activity, the payment of Central excise duty and its refund. In the circumstances, we are of the opinion that question must be answered in the affirmative in favour of the assessee - Also see SHREE BALAJI ALLOYS VERSUS COMMISSIONER OF INCOME-TAX [2011 (1) TMI 394 - JAMMU AND KASHMIR HIGH COURT] - Decided in favour of assessee.
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