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2022 (3) TMI 1011 - AT - Income TaxDeduction claimed u/s. 80IC - transport subsidy, central interest subsidy, power subsidy and central excise refund - Addition on the ground that the same were not derived from manufacturing activities and thus the deduction claimed is totally illegal, illegitimate - HELD THAT:- As in the case of CIT vs Meghalaya Steels Ltd [2016 (3) TMI 375 - SUPREME COURT] whereby the appeal of the Hon'ble Guwahati High Court upheld [2013 (7) TMI 175 - GAUHATI HIGH COURT] holding that the amounts received by the assessee in respect of transport, central interest subsidy, power subsidy and central excise refund are in the nature of reimbursement of cost to the assessee for setting up industries in the backward areas as per the policy of government. In our opinion the issue is settled in favour of the assessee and we, therefore, respectfully following the aforesaid decision set aside the order of CIT and direct the AO allow the claim of deduction u/s. 80IC - Appeal of assessee is allowed.
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