TaxTMI 
TaxTMI 
2013 (10) TMI 67
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.... the following substantial questions of law for determination and decision: "Whether, in the facts and in the circumstances of the case, the learned Tribunal was justified in confirming the order, dated 21.02.2008 of the learned Commissioner, Income Tax, Dibrugarh, in exercise of his powers under Section 263 of the Income Tax Act, 1960?" 3. We have heard Mr. G.N. Sahewalla, learned Senior counsel, for the assessee-appellant, and Mr. S. Sharma, learned counsel, for the respondent. 4. The material facts, giving rise to this appeal, may, in brief, be set out as under: (i) The appellant is a company incorporated under the Companies Act, 1956, and is engaged in manufacture of Coke, etc, in its industrial establishment, which has star....
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....which gave rise to ITA No. 133(Gau)2008. (iv) In course of time, by its order, dated 28.01.2011, the learned Tribunal upheld the revisional order by taking the view that the amount, received by the appellant Company, as transport subsidy, was not deductible under Section 80IA. Aggrieved by the decision of the learned Tribunal, so reached, this appeal has been preferred. 5. While considering the present appeal, it needs to be noted that a Division Bench of this Court, in a recent decision, reached on 29.05.2013, in ITA No.7/2010 (Commissioner of Income Tax Vs. Meghalaya Steels Ltd.) and other connected appeals, has taken the view that transport subsidy is aimed at reducing the cost of production of the industrial undertakings covered b....
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....ncerned in a manner, which would directly affect the cost of production inasmuch as transportation subsidy, on the raw materials, was not meant to cover all the raw materials, but only that part or portion of the raw materials, which was actually required and used by an industrial unit in its manufacturing programme approved by the Government concerned and, similarly, transport subsidy, on the finished goods, too, help in reduction of the cost of manufacturing of the industrial unit concerned inasmuch as subsidy on transportation of finished goods was promised to be given on the finished goods actually produced by the industrial unit in accordance with the manufacturing programme approved by the Government concerned. 80. When the transpo....
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....gible for deduction under Section 80IB or 80IC, he will not be liable to pay income tax on the increased profit. Conversely put, the subsidies serve no purpose if he has to pay increased tax on the profits, which he has made, because of the operational subsidies received by him. 139. Situated thus, there can be no escape from the conclusion that the subsidies, in question, being operational in nature, help the assessee concerned earn profits and the profits, so earned, because of the subsidies, in question, are deductible in terms of the provisions of Section 80IB of the Act." 6. In view of the decision, so arrived at by this Court, in Meghalaya Steels Ltd. (supra), there can be no escape from the conclusion that the Revisional Author....