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2021 (7) TMI 93 - AT - Income TaxDeduction u/s 80IA(4)(iv)(c) - subsidy received by the Assessee had to be regarded as “profits and gains derived from eligible business” - as per CIT-A subsidy subsidy as well as the additional subsidy received by the assessee from the Karnataka Government was in lieu of electricity supply to farmers and others at subsidized rates - HELD THAT:- Entitlement for DEPB or Duty Drawback Scheme arose, when the undertaking decided to export after manufacturing or production and this incentive was restricted only to the export of goods of a specified class. Consequently, if there was no export, there was no incentive from DEPB or Duty Drawback. This apart, DEPB or Duty Drawback Scheme did not provide refund of exemption from Central Excise Duty actually paid. Thus, the relationship under the DEPB or Duty Drawback Scheme, on the one hand, and the manufacturing or production, on the other, was not proximate and direct. The entitlement was based on the artifice of average amount of duty paid. The scrutiny of the scheme under which the assessee received additional subsidy is required to be seen. It is only after perusal of the scheme under which subsidy was given to the assessee, the principles laid down in the case of Meghalaya Steels [2016 (3) TMI 375 - SUPREME COURT] can be applied to the facts of the case of the assessee. Since this exercise has not been carried out in the proceedings before the lower authorities, we are of the view that it would be just and appropriate to set aside the order of the CIT(A) and remand the issue to the AO for fresh consideration in the light of the decision cited by the learned DR before the Tribunal, after scrutiny of the scheme under which the assessee received the subsidy. Despite specific directions copies of the subsidy scheme has not been provided by the parties. In these circumstances, we have no other alternative but to remand the issue to the AO for consideration afresh in the light of the directions give above - Appeal of the Revenue is allowed for statistical purposes.
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