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TMI Blog2015 (1) TMI 1242X X X X Extracts X X X X X X X X Extracts X X X X ..... th Das, Adv. The Court : The appeal is directed against a judgement and order dated 2nd April, 2014 by which the learned Income Tax Appellate Tribunal following its earlier judgement in the case of ACIT, Circle Shillong Vs. M/s. Cement Manufacturing Co. Ltd. held that the assessee was entitled to deduction under Section 80IC treating the transport and interest subsidy as part of the business prof ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... V. Commissioner of Income Tax, reported in (2009) 317 ITR 218 (SC) wherein it was held that subsidy by way of customs duty draw back could not be treated as a profit derived from the industrial undertaking. We have not been impressed by the submissions advanced by Mr. Bandhyopadhyay. The judgement of the Apex Court in the case of Liberty India (supra) was in relation to the subsidy arising out of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uction'. In other words, if power is consumed for any other purpose like setting up the plant and machinery, the incentives will not be given. Refund of sales tax will also be in respect of taxes levied after commencement of production and up to a period of five years from the date of commencement of production. It is difficult to hold these subsidies as anything but operation subsidies. These sub ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... en operational subsidy and capital subsidy which was laid down by the Apex Court in the Sahney's case. The point was thoroughly considered by the Guwahati High Court in the case of Commissioner of Income Tax -Versus- Meghalaya Steels Ltd, reported in [2013] 356 ITR 235 (Gauhati). It was rightly pointed out by the Gauhati High Court that the issue as to whether transport subsidy would have the effe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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