TMI Blog2015 (1) TMI 1242X X X X Extracts X X X X X X X X Extracts X X X X ..... -IB or under Section 80-IC on the transport subsidy, interest subsidy, power subsidy and insurance subsidy. We are in full agreement with the views expressed by the Guwahati High Court and of the opinion that the judgment of the learned Tribunal is unexceptionable. - GA No.3266 of 2014 & ITAT No.130 of 2014 - - - Dated:- 15-1-2015 - GIRISH CHANDRA GUPTA ARINDAM SINHA JJ. For the Appellant: Mr. R. N. Bandhyopadhyay, Adv. Mr. P. Dudhoria, .. Mr. J. P. Khaitan, Sr. Adv. Mr. Siddharth 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 Manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ty India could be availed after the manufacturing activity was over and exports were made. But, we are concerned in this case with the transport and interest subsidy which has a direct nexus with the manufacturing activity inasmuch as these subsidies go to reduce the cost of production. Therefore, the judgement in the case of Liberty India V. Commissioner of Income Tax has no manner of application. The Supreme Court in the case of Sahney Steel And Press Works Ltd. Others Versus-Commissioner of Income Tax, reported in [1997] 228 ITR at page 257 expressed the following views:- ..Similarly, subsidy on power was confined to `power consumed for production . In other words, if power is consumed for any other purpose like setting up the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... dy would have the effect of reducing the cost of transportation was not at all considered by this Court in the case of Andaman Timber Industries Ltd (supra). Neither the judgment in the case of Andaman Timber Industries Ltd. (supra) nor in the case of Liberty India (supra) has any application to the facts and circumstances of the case in hand. The point raised before the learned Tribunal is really covered by the judgment of the Guwahati High Court in the case of Commissioner of Income Tax Versus-Meghalaya Steels Ltd (supra) wherein it was held, that where there was a direct nexus between the subsidies, on the one hand, and the profits and gains derived by, or derived from, the industrial undertakings concerned the assessee was entitled to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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