Deduction u/s 80IC not available on Sales Tax Rebate or on Ancillary activity Income: HC

Brief of the Case Punjab & Haryana High Court held In the case of The CIT vs. M/s H. M. Steels Ltd that on an analysis of section 80IC, it must be held that any industrial undertaking or enterprise would be entitled to deduction under sub-section (1) only to the extent of profits derived from such an industrial undertaking and not on account of any rebate or incentive made available to it by the Government. The sales tax rebate is an incentive which flows from the scheme framed by the Himachal Pradesh Government and is therefore; not a profit derived from the business but is an ancillary p...