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2010 (9) TMI 679 - HC - Income TaxDeduction u/s 80-IB - Interest subsidy, Transport subsidy and excise duty refund - there is no dispute that the subsidies granted are revenue receipts and have been granted after setting up of the new industries and after commencement of production - The expression "derived from" occurring in section 80-IB of the Act in relation to the business of an industrial undertaking is narrower in connotation than the expression "attributable to" the business of an industrial activity - held that transport subsidy and interest subsidy cannot be said to be "derived from" the industrial undertaking of the assessee - it can only be ancillary to the profits and gains relatable to or "attributable to" the business of the industrial undertaking and not in the category of profits and gains "derived from" its industrial activity - Decided against the assessee Regarding Central excise duty refund - Notification No. 32 of 1999 and Notification No. 33 of 1999 both dated 8-7-1999 - Central Board of Excise and Customs in its circular dated 19-12-2002 clarified that the refund is not on account of excess payment of excise duty but is basically designed to give effect to the exemption and to operationalise the exemption given by the notifications - 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 - Decided in favour of the assessee
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