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2010 (6) TMI 378 - HC - Income TaxDistinction between the words "derived from" and "attributable to" - Section 80 IA - Freight Subsidy - Decision of Supreme Court in the matter of CIT vs. Cambay Electric supply Industrial Co. Ltd. (1978 -TMI - 5174 - SUPREME Court) - Held that: - It is apparent that the Apex court held that it is only the profits generated i.e. operational profits which are entitled to the benefit under Section 80-1A. In Sterling Food the Apex Court (1999 -TMI - 5740 - SUPREME Court) has also laid down a test as to what is the source of income. In the present case the source of income transport subsidy is not the business of the assessee but the scheme framed by the Central Government. Applying the tests laid down in Liberty India's case (2009 -TMI - 34471 - SUPREME COURT) and Sterling Food's case (1999 -TMI - 5740 - SUPREME Court) it is apparent that the transport subsidy received by the assessee is not a profit derived from business since it is not an operational profit. The source of the subsidy is not the business of the assessee but scheme of the Central Government. In view of the above discussion, we are clearly of the view that the questions have to be answered in favour of the revenue and against the assessee.
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