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2014 (8) TMI 762 - AT - Income TaxBlending and bottling amounts to manufacture or not u/s 80IB(2)(iii) - Held that:- As decided in assessee’s own case, it has been held that the activity carried on by the assessee are manufacturing activity eligible for deduction u/s 801B of the Act - the finding of the CIT(A) in allowing the deduction u/s 801B is upheld – Decided against Revenue. Sales tax incentives duty drawback or not – Eligibility for the benefit of section 80IB – Held that:- The assessee has received sales tax incentive from the Commercial Tax Department as VATD-NPV-CPS2005 appearing in the Profit and Loss account under the head other income – Relying upon Liberty India vs. CIT [2009 (8) TMI 63 - SUPREME COURT] - immediate source of income is to be looked into while allowing the deduction under 80IA deduction - assessee received sales tax VAT incentives is the first degree and it is Govt. benefit and it is not industrial undertaking benefit, it is not a profit derived from eligible business – the issue is does not have any direct linkage to the eligible undertaking – thus, the order of the CIT(A) is set aside and the assessee is not eligible for deduction u/s 80-IB in respect of interest on FDR and Sales Tax incentive – Decided in favour of Revenue.
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