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TMI Blog2023 (3) TMI 822X X X X Extracts X X X X X X X X Extracts X X X X ..... n M/s. Liberty India [ 2009 (8) TMI 63 - SUPREME COURT] ? - HELD THAT:- As in view of the subsequent decision of the Hon ble Supreme Court in the case of Meghalaya Steel Ltd (supra), the findings recorded by the Ld. AO based on the decision of the Hon ble Supreme Court in the case of Liberty India (supra) cannot be held as sustainable as in Meghalaya Steel Ltd (supra) held that the Hon ble Himachal Pradesh High Court having wrongly interpreted the judgment in the case of CIT vs. Sterling Foods [ 1999 (4) TMI 1 - SUPREME COURT] and Liberty India (supra) to arrive at the opposite conclusion has held to be wrongly decided. Since the Hon ble Supreme Court has overruled its earlier decision in the case of Liberty India (supra) and now the d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... a total income of Rs. 102,53,82,880/-. After processing the return of income U/s. 143(1), the case was selected for complete scrutiny under CASS and accordingly statutory notices U/s. 143(2) and 142(1) were issued in electronic format to the assessee calling for the information. The assessee s representative filed its reply on line through e-filing portal. The case of the assessee was notified to ACIT, Central Circle-1, Visakhapatnam vide order U/s. 127 of the Act by the Pr. CIT-1, Visakhapatnam vide order Pr. CIT_1/VSP/127/Survey/Cent.2020-21, dated 10/11/2020. The Ld. AO on perusal of the information submitted by the assessee found that the assessee has claimed deduction U/s. 80IB(11A) of the Act amounting to Rs. 73,58,97,729/- on the net ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (supra) allowed the appeal of the assessee. Aggrieved by the order of the Ld. CIT(A), the Revenue is in appeal before us. 4. The Revenue has raised six grounds in its appeal however, the only issue involved in the grounds of appeal was in relation to allowability of income under Duty Draw Back and MEIS scheme for the profits derived from eligible industrial undertaking for the purpose of claiming deduction U/s. 80IB of the Act. 5. The Ld. DR in his written submissions briefly explained the operations of MEIS scheme and Duty Draw Back and argued that the export incentives cannot be considered as income derived from industrial undertaking for the purpose of section 80IB of the Act. The Ld. DR placed heavy reliance on the judgment of th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (11A) of the Act. The Ld. AR placed heavy reliance on the assessee s own case in ITA No. 156/Viz/2021 (supra) for the AY 2017-18. The Ld. AR therefore pleaded that the order of the Ld. CIT (A) be upheld. 6. We have considered the rival submission and perused the material available on record. The main contention of the Revenue is that the decision in the case of M/s. Meghalaya Steels Limited (supra) held by the Apex Court does not over ride the subsequent judgment of the Apex Court in M/s. Liberty India(supra). We find that in the case of M/s. Meghalaya Steels Limited (supra), the Hon ble Apex Court rendered a final verdict after referring to its earlier decision in the case of M/s. Liberty India (supra). We have also observed that the Au ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hundred per cent of the profits and gains derived from such undertaking for five assessment years beginning with the initial assessment year and thereafter, twenty-five per cent (or thirty per cent where the assessee is a company) of the profits and gains derived from the operation of such business in a manner that the total period of deduction does not exceed ten consecutive assessment years and subject to fulfilment of the condition that it begins to operate such business on or after the 1st day of April, 2001 : Provided that the provisions of this section shall not apply to an undertaking engaged in the business of processing, preservation and packaging of meat or meat products or poultry or marine or dairy products if it begins ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ission that assistance by way of subsidies which are reimbursed on the incurring of costs relatable to a business, are under the head income from other sources , which is a residuary head of income that can be availed only if income does not fall under any of the other four heads of income. Section 28(iii)(b) specifically states that income from cash assistance, by whatever name called, received or receivable by any person against exports under any scheme of the Government of India, will be income chargeable to income tax under the head profits and gains of business or profession . If cash assistance received or receivable against exports schemes are included as being income under the head profits and gains of business or profession , it ..... X X X X Extracts X X X X X X X X Extracts X X X X
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