Case Law Details
Brief of the Case
In the case DCIT Vs. Maithan Smelters Ltd. the Hon’ble Kolkata ITAT held that the interest subsidy, transport subsidy and power subsidy received by the assessee are eligible for deduction u/s 80IB of the Act.
Facts of the Case
The assessee company started its factory unit at Export Promotional Industrial Park, Byrnihat, Meghalaya for manufacture of ferro alloys and in order to avail incentive declared by Government of Meghalaya in its industrial policy formulated in 1997 effective from 15th August, 1997. The assesse had commenced its commercial production on 02.10.2001 relevant to A.Y.2002-03 and in view of the loss, no deduction u/s 80IB was claimed by the assessee for the said assessment year. However, the claim of deduction u/s 80IB of the Act was made for the first time by the assessee in A.Y.2003-04 which was duly granted by the ld.AO in the scrutiny assessment proceedings u/s 143(3) r.w.s. 147 of the Act. During the course of assessment proceedings under appeal i.e. 2005-06, the ld. AO found that the assessee was in receipt of the following subsidies from the Government :-
