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2018 (12) TMI 819 - AT - Income TaxSection 10B deduction - Holding assessee’s duty drawback and interest subsidy eligible for sec. 10B - Held that:- Hon'ble apex court’s recent decision in CIT vs. Meghalaya Steels Ltd [2016 (3) TMI 375 - SUPREME COURT] has settled the law about the similar kind of interest subsidy reducing revenue expenditure as eligible for sec. 80I deduction. Be that as it may, learned co-ordinate bench has declined Revenue’s similar arguments in preceding paragraph. We therefore adopt the said reasoning mutatis mutandis affirm the CIT(A)’s findings under challenge in holding assessee’s duty drawback and interest subsidy to be eligible for sec. 10B. Disallowance of other income while computing the deduction u/s 10B - Held that:- as rightly pointed out by the ld AR that section 10B(1) of the Act starts with the expression ‘subject to the provisions of this section’. The provisions of section 10B(4) of the Act which stipulates the computation mechanism clearly states that the entire profits of the business of the eligible undertaking should be taken into account for computing the amount eligible for section 10B of the Act.
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