2017 (1) TMI 1298 - SCH - Income Tax

Eligibility for deduction under section 80IB - As the entitlement of export incentives to deduction under Section 80-IB of the Income Tax Act, 1961 has been squarely decided by this Court in Liberty India vs. C.I.T. 2009 (8) TMI 63 - SUPREME COURT Commissioner of Income Tax vs. Meghalaya Steels Limited (2016 (3) TMI 375 - SUPREME COURT) does not in any way erode the efficacy of law laid down in Liberty India (supra) as Meghalaya Steels Limited (supra) was primarily a case where the Court was dealing with transport subsidy, which is a reimbursement of the cost incurred by the manufacturing unit in the North-Eastern part of the Country. Held that - While Liberty India (supra) dealt with a situation of post-manufacture and availability of incentive only in the event there was export of the manufactured goods. Meghalaya Steels Limited (supra), as already noted, dealt with altogether a different situation. Consequently, we do not find any merit in this special leave petition. Special leave petition is, accordingly, dismissed.- HC REF CASE 2014 (6) TMI 981 - BOMBAY HIGH COURT .

Summary

The Supreme Court dismissed the special leave petition regarding the entitlement of export incentives to deduction under Section 80-IB of the Income Tax Act, 1961. The Court upheld the decision in Liberty India vs. C.I.T. (2009) 9 SCC 328, stating that Commissioner of Income Tax vs. Meghalaya Steels Limited (2016) 6 SCC 747 does not affect the earlier ruling. The petition was dismissed, and all pending applications were disposed of.