S.80IB-Subsidies for reimbursement of production cost are business income

Brief of the Case The Supreme Court held In the case of CIT vs. M/s Meghalaya Steels Ltd. that the Calcutta High Court in Merino Ply & Chemicals Ltd. v. CIT, 209 ITR 508 [1994], held that transport subsidies were inseparably connected with the business carried on by the assessee. Further Calcutta High Court in C.I.T. v. Cement Manufacturing Company Limited, judgment dated 15.1.2015 held that the Supreme Court in the case of Sahney Steel and Press Works Ltd. & Others versus Commissioner of Income Tax, reported in [1997] 228 ITR held that subsidy on power was confined to ‘power consume...