2008 (11) TMI 231 - HC - Income Tax

Refund of excise duty – deduction u/s 80IB – held that - The finding of the authorities below is that the refund of excise duty is pivoted on the manufacturing activity carried on by the assessee. Once such a finding of fact has been returned we need not go further and examine the immediate and proximate source of refund of excise duty. In other words, as to whether there was direct nexus between the refund of excise duty and industrial activity. As a matter of fact, in the questions proposed by the Revenue, there is no specific question, that this finding of the authorities below is perverse. - There is no ground taken by the Revenue whereby the substantial findings of fact have been challenged by the Revenue as being perverse. - test of proximity, i.e., direct nexus with the industrial activity is not necessary while claiming deduction under section 80-IB of the Act. – Deduction allowed u/s 80IB – decision in the matter of Eltek SGS (2008 -TMI - 3086 - DELHI HIGH COURT) followed