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2009 (11) TMI 542 - HC - Income TaxFreight Subsidy - deduction u/s 80-IA - Held that: - the Apex Court held that the duty draw backs could not be deemed to be profits derived from business. 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 (1999 -TMI - 5740 - SUPREME Court) the Apex 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. - Decided in favor of revenue.
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