TMI Blog2017 (6) TMI 83X X X X Extracts X X X X X X X X Extracts X X X X ..... mmissioner of Income Tax income Tax Vs. M/S Meghalaya Steels Ltd, reported in (2016 (3) TMI 375 - SUPREME COURT ) 3 Scale 192, the Supreme Court held that the benefit of deduction under section 80-IB of the Income Tax Act is applicable to transport subsidy.A circular No. 39/2016 dated November 29th, 2016, issued by Government of India, Ministry of Finance, Department of Revenue, Central Board of Direct Taxes, New Delhi is also on the aforesaid terms. - Assessee appeal allowed. - ITA No. 04 of 2010, MP No. 391 of 2010 - - - Dated:- 26-4-2017 - Ramalingam Sudhakar And Ali Mohammad Magrey, JJ. For the Petitioner : Mr. Z. A. Shah, Sr. Advocate with Mr. Hanan, Advocate For the Respondent : Mr. J. A. Kawoosa, Advocate JUDGMENT ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... come Tax Act. Among various exemptions, appellant claiming the exemption in relation to excise duty refund in a sum of ₹ 1,52,38,466/-, transport subsidy of ₹ 83.05902/-. The Assessing Officer declined to grant the benefit and the Commissioner Appeals upheld the same and the Tribunal confirmed the said order. Aggrieved by the said order, appeal is before us. 7. The issue relating to excise duty refund in relation to claim in terms of Section 80 IB of Income Tax Act was considered by this Court in ITA No. 02 of 2010 dated 31.01.2011, in M/S Shree Balaji Alloys Ors. vs. Commissioner of Income Tax Anr, by virtue of an exhaustive and detailed judgment, analysing the industrial policy of the State and the need for granting the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ction, and that these were not required for creation of New Assets cannot be viewed in isolation, to treat the incentives as production incentives, as held by the Tribunal, for the measure so taken, appears to have been intended to ensure that the incentives were made available only to the bonafide Industrial Units so that larger Public Interest of dealing with unemployment in the State, as intended, in terms of the Office Memorandum, was achieved. (29) The other factors, which had weighed with the Tribunal in determining the incentives as Production Incentives may not be decisive to determine the Character of the incentive subsidies, when it is found, as demonstrated in the Office Memorandum, amendment introduced thereto and the stat ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Tax Act is applicable to transport subsidy. Relevant para reads as follows:- It only remains to consider one further argument by Shri Radhakrishnan. He has argued that as the subsidies that are received by the respondent, would be income from other sources referable to section 56 of the Income Tax Act, any deduction that is to be made, can only be made from income from other sources and not from profits and gains of business, which is a separate and distinct head as recognized by Section 14 of the Income Tax Act. Shri Radhakrishnan is not correct in his submission that assistance by way of subsidies which are reimbursed on the incurring of costs relatable to a business, are under the head income from other sources which is a residuar ..... X X X X Extracts X X X X X X X X Extracts X X X X
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