9911796707
TMI Blog2023 (2) TMI 1364X X X X Extracts X X X X X X X X Extracts X X X X ..... 2 on the following substantial question of law :- i) "Whether the transport subsidy received by the undertaking engaged in manufacturing process is covered by the meaning of the expression "business income" with in the meaning of Section 80 IC of the Income Tax Act, 1961?" The substantial question of law which has been admitted for consideration arise in the assessee's own case for the assessment year 2011-12 in I.T.A. No. 140 of 2019 and by judgment dated 26.09.2022, the appeal filed by the revenue was dismissed. Thus the substantial question of law which has been admitted for consideration in this appeal stood answered in favour of the assessee in assessee's own case in ITA No. 140 of 2019. The operation portion of the judgment reads ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the notifications. In that sense, the Central excise duty refund does not appear to bear the character of income since what is refunded to the assessee is the amount paid under the modalities provided by the Department of revenue for giving effect to the exemption notifications. There is also nothing to suggest that the assessee has recovered or passed on the excise duty element to its customers. 20. Even assuming the refund does amount to income in the hands of the assessee, it is a profit or gain directly derived by the assessee from its industrial activity. The payment of Central excise duty has a direct nexus with the manufacturing activity and similarly, the refund of the Central excise duty also has a direct nexus with the manuf ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... oyment, hence a purpose in Public Interest. 30) For all what has been said above, the finding of the Tribunal on the first issue that the Excise Duty Refund, Interest Subsidy and Insurance Subsidy were Production Incentives, hence Revenue Receipt, cannot be sustained, being against the law laid down by Hon'ble Supreme Court of India in Sahney Steel and Ponni Sugars cases (supra)." The appeal filed by the revenue against the decision in the case of Shree Balaji Alloys in Civil Appeal No. 10061 of 2011 was dismissed by the Hon'ble Supreme Court by order dated April 19, 2016. The order reads as follows :- "Heard Mr. K. Radhakrishnan, learned senior counsel appearing for the Revenue as well as Mr. Ajay Vohra, learned senior counsel appea ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
