TMI Blog2022 (3) TMI 1011X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 industrie ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 7,27,768/- in respect of transport subsidy, central interest subsidy, power subsidy and central excise refund on the ground that the same were not derived from manufacturing activities and thus the deduction claimed is totally illegal, illegitimate. 2. The facts in brief are that the assessee is engaged in the business of manufacturing M.S. Ingots, Bars and Section etc in the North Eastern Regi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reating the same as revenue receipts to which the provisions section 80IB/80IC of the Act were not applicable and the appeal of the assessee was also dismissed by ld. CIT(A) by following the decision of Apex Court in the case of Sahney Steel and Press Works Ltd. As reported in 228 ITR 253 (SC). The appeal of the assessee for the instant year was also dismissed by the Ld. CIT(A) by giving the same ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ourt in the case of CIT vs Meghalaya Steels Ltd. reported in (2016) 383 ITR 217. The Ld. AR, therefore, prayed that since the issue has been settled by the Hon'ble Apex Court by holding that subsidies were in the nature re-imbursement to the assessee for elements of cost relating to manufacture or sale of their products and therefore was having direct nexus with the cost incurred by the assess ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he 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 of the Act. 5. In the result, the appeal of assessee is allowed. Order is pronounced in th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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