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2013 (6) TMI 42 - HC - Income TaxDeduction u/s 80IA - tariff subsidy specifically given to meet the cost of power of the industrial undertaking - exclusion from computing the deduction admissible under Section 80IA - held that:- As already stated, the admitted case is that the assessee received operational subsidy based on the performance of the assessee in its industrial activity. When the receipt is thus referable to the source of income earning activity of the assessee, applying the decision in Liberty India vs. Commissioner of Income Tax (2009 (8) TMI 63 - SUPREME COURT), we have no hesitation in setting aside the order of the Tribunal by holding that the assessee is entitled to deduction in respect of operational subsidy under Section 80IA. As far as reference to the decision of the Apex Court in Pandican Chedmicals Ltd., Vs. Commissioner of Income Tax (2003 (4) TMI 3 - SUPREME Court) is concerned, the Tribunal referred to the said decision for the purpose of considering the relief of interest receipt on the deposit made with the Electricity Department. The assessee has restricted its claim before this court with reference to the tariff subsidy alone and has not raised any issue as regards the interest receipt. - Decided in favor of assessee.
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