Commissioner Of Income Tax, Jaipur-I, Jaipur v. M/S Star International, 38, Madrampura, Civil Lines, Jaipur

HIGH COURT OF JUDICATURE FOR RAJASTHAN BENCH ATJAIPUR D.B. Income Tax Appeal No. 133 / 2012 Commissioner of Income Tax, Jaipur-I, Jaipur ----Appellant Versus M/s Star International, 38, Madrampura, Civil Lines, Jaipur ----Respondent _____________________________________________________ For Appellant(s) : Mr. K.D. Mathur & Mr. Prabhansh Sharma for Mr. R.B. Mathur For Respondent(s) : Ms. Ishita Rawat for Mr. Gunjan Pathak _____________________________________________________ HON'BLE MR. JUSTICE K.S.JHAVERI HON'BLE MR. JUSTICE INDERJEET SINGHOrder 31/08/2017 1.By way of this appeal, the appellant has assailed thejudgment and order of the Tribunal whereby the Tribunal hasdismissed the departmental appeal as well as cross objection ofthe assessee. 2.This Court while admitting the matter framed the followingquestion of law:- “Whether in the facts and circumstances of thecase the ITAT was justified in law in holding thatdeduction u/s 80IB(4) is allowable in respectexcise duty refund amounting the Rs. 8897836/-even though the same cannot be treated as profitderived from industrial undertaking in view ofratio laid down by the Apex Court in the case ofLiberty India vs. CIT (317 ITR 218).?” 3. He has mainly contended on the ground that there is nosubsequent Supreme Court decision after the issued which hasnow been accepted by this Court in case of CIT vs. SureshKumar Bajoria in Tax Appeal No. 294/2008 decided on 18[th] May,2017. 4.Taking into consideration the decision in Commissioner ofIncome TAx vs. Meghalaya Steels Ltd. (2016) 67 taxmann.com 158 (SC) wherein it has been held as under:- “5.The Respondent is engaged in the businessof manufacture of Steel and Ferro Silicon. On9.10.2014, the Respondent submitted itsreturn of income for the year 2004-2005disclosing an income of Rs. 2,06,970/- afterclaiming deduction Under Section 80-IB of theIncome Tax Act on the profits and gains ofbusiness of the Respondent's industrialundertaking. The Respondent had received thefollowing amounts on account of subsidies:of manufacture of Steel and Ferro Silicon. On9.10.2014, the Respondent submitted itsreturn of income for the year 2004-2005disclosing an income of Rs. 2,06,970/- afterclaiming deduction Under Section 80-IB of theIncome Tax Act on the profits and gains ofbusiness of the Respondent's industrialundertaking. The Respondent had received thefollowing amounts on account of subsidies: Transport subsidy – Rs. 2,64,94,817.00 Interest subsidy - Rs. 2,14,569.00 Power subsidy - Rs. 7,00,000.00 Total - Rs. 2,74,09,386.00 5. In view of the above, the issue is required to be answered in favour of the assessee against the department. 6.Hence, the appeal stands dismissed. (INDERJEET SINGH)J. (K.S.JHAVERI)J. A.Sharma/52