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TMI Blog2013 (10) TMI 67X X X X Extracts X X X X X X X X Extracts X X X X ..... with the views expressed by the Revisional Authority that transport subsidy was not entitled to be deducted in terms of the provisions of Section 80IA. – Decided in favor of Assessee. - ITA 27/2011, ITA 26/2011 - - - Dated:- 24-7-2013 - I. A. Ansari And Indira Shah, JJ. JUDGMENT (Ansari, J.) (Oral) This is an appeal under Section 260A of the Income Tax Act, 1961 (hereinafter referred to as 'the Act'), against the order, dated 28.01.2011, passed by the learned Income Tax Appellate Tribunal, Guwahati Bench, (hereinafter referred to as the 'learned Tribunal'), in Income Tax Appeal (in short, 'ITA') No. 130(Gau)/2008 for the assessment year 2003-2004. 2. The appeal has been admitted on the following substantial questions of law ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pellant Company as transport subsidy. (iii). The assessment order, dated 08.02.2006, was interfered with, on 25.01.2008, by the Revisional Authority by invoking its power under Section 263 of the Act and, having examined the case of the appellant Company as well as the assessment order, the Revisional Authority directed the Assessing Officer to make assessment order afresh on the ground that the transport subsidy, which had been received by the industrial undertaking of the appellant Company, was not permissible to be deducted by taking recourse to Section 80IA of the Act. As against the order, dated 25.01.2008, passed by the Revisional Authority, the appellant Company preferred an appeal, which gave rise to ITA No. 133(Gau)2008. (iv) I ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uld be given on the transport costs, between Siliguri and the location of the industrial unit concerned, on the raw materials actually required and used by the qualified industrial unit in its manufacturing programme as may have been approved by the Government concerned. The Transport Subsidy Scheme, 1971, also promised to make available transport subsidy on finished goods, actually produced by the industrial unit in accordance with the manufacturing programme approved by the Government concerned. 79. What logically follows from the above discussion is that subsidy, on transportation of raw materials as well as finished goods, was promised to be made available to the industrial units concerned in a manner, which would directly affect the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... *** *** *** *** 138. What crystallizes from the above discussion is that the assessee's income, with the cost of production being reduced, because of the subsidies received, would obviously rise and, in consequence thereof, the profits earned, and the gains made, by the industrial undertaking concerned would also increase. The profits, so increased, would be part of the gross total income of the assessee as defined under Section 80B of the Act subject to deductions, as provided under Chapter VIA of the Act, which includes deductions under Section 80B as well as 80C. If an assessee becomes eligible for deduction under Section 80IB or 80IC, he will not be liable to pay income tax on the increased profit. Conversely put, the subsidi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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