TaxTMI 
TaxTMI 
TaxTMI 
2022 (7) TMI 498
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....e Tax Appellate Tribunal 'B' Bench, Kolkata in I.T. (SS) A. Nos. 137 to 141/Kol/2016 for the assessment years 2007-08 to 2011-12. The revenue has raised the following substantial questions of law for consideration : i) Whether on the facts and in the circumstances of the case, the Learned Appellate Tribunal, has erred in law while treating the amount of VAT reemission as eligible for deduction under Section 80IC of the Income Tax Act, 1961, when essentially, it is of the nature of duty drawback and cannot be called profit derived from industrial undertaking and cannot be reckoned in computing deduction under Section 80IC of the Income Tax Act, 1961? ii) Whether on the facts and in the circumstances of the case, the Learned Appellate T....
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....al for the assessment years 2008-09 and 2009-10 vide order dated 19th November, 2013 and also the decisions of the Guwahati tribunal in other cases as well, namely, in the case of ACIT Vs. G.L. Coke Pvt. Ltd. in ITA No.43/Gau/2009 dated 5th April, 2010 and in the case of JBB Lime Industry in ITA No.58/Gau/2009 dated 5th April, 2010 and allowed the assessee's appeal. The revenue is before us challenging the said order. After we have elaborately heard the learned counsel appearing for the parties and carefully perused the materials placed on record, we are of the opinion that we need not labour much to find out any answer to the substantial questions of law which have been raised before us. In fact, such questions have been considered and an....
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.... of customs duty payment on the import content of the export product which is provided for by credit to customs duty against the export product. In such a scenario, it cannot be said that such duty exemption scheme is derived from profits and gains made by the industrial undertaking or business itself". As pointed out by the Hon'ble Supreme Court, the DEPB entitlement arises only when the undertaking goes on to export the said product, that is, after it manufactures or produces the same and if there is no export, there is no DEPB entitlement and, therefore, its relation to manufacture of a product and/or sale within India is not proximate or direct but is step removed. The Hon'ble Supreme Court took note of the decision of this Court in t....
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....certain benefits under a scheme formulated by the State Government. However, on facts, the assessee therein claimed the transport expenditure to be incidental expenditure of the assessee's business and while considering the said plea, it was pointed out that the subsidy recoups and that the purpose of recoupment is to make up the possible profit for operating in a backward area and the subsidises were inseparably connected with the profitable conduct of the business and, therefore, the assessee was entitled to the benefit of Section 80IC of the Act. The Hon'ble Supreme Court in Meghalaya Steels Ltd. (supra) held that the decision in Merinoply & Chemicals Ltd. (supra) correctly appreciated the legal position. Undisputed facts of the case on ....
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....1 per cent is to be remitted to the Department. Therefore, there is a market difference between a scheme of remission and a rebate on sales tax. Therefore, the decision in H.M. Steels Ltd. (supra) is also distinguishable on facts. While on this issue, we take note of the decision of the Hon'ble Court in Sahney Steel and Press Works Ltd. Vs. CIT, reported in [1997] 228 ITR 253 (SC) wherein the Hon'ble Supreme Court held that the nature of subsidy needs to be commissioned by the Court in each case. The decision of the Hon'ble Supreme Court in Sahney Steel and Press Works Ltd. (supra) would be of great relevance to the case on hand. The Hon'ble Supreme Court pointed out that when subsidy is given for the purpose of operating an industry more p....