Merinoply & Chemicals Ltd. v. CIT

209 ITR 508High Court1994#2703 most cited

What is Merinoply & Chemicals Ltd. v. CIT authority for?

Transport subsidies received by a business operating in a backward area, being inseparably connected with the ongoing business and incidental to its expenditure, constitute a revenue or trading receipt taxable under the Income Tax Act.

43

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2016 to 2025.

Also referred to as

Merinoply & Chemicals Ltd. v. CIT · 209 ITR 508 · Section 2(24) Income Tax Act · Section 28 Income Tax Act · taxability of subsidies · revenue receipt · capital receipt · trading receipt · transport subsidy · incentive scheme · backward area

Sections most often in play

Section 1961Section 2(24) of the Income Tax ActSection 28 of the Income Tax ActSection 41(1) of the Income Tax Act

Issues it is cited on

section 80iabsection 33bsection 75section 10(2a)section 10(35)section 80hsection 40a(9)section 80msection 80icsection 80hhsection 80jsection 115ja

Judgments citing Merinoply & Chemicals Ltd. v. CIT

DCIT, Sangrur vs. M/S H.M. Steel Ltd., Sangrur

In the result, this appeal of the Revenue is partly allowed

ITA 585/CHANDI/2013[2008-09]Status: DisposedITAT Chandigarh05 Nov 2018AY 2008-09

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumarआयकर अपील सं Ita No. 366/Chd/2013 "नधा"रण वष" / Assessment Year : 2008-09

For Appellant: Sh. N.K.Garg, AdvocateFor Respondent: Smt. Chanderkanta, Sr.DR
Section 234BSection 80Section 80ISection 8O

…Subsidy was rightly taken into consideration by the assessee in working out the profits and gains of the business undertaking relying on the decision of Calcutta High Court in the case of Merino Ply and Chemicals Ltd. Vs. CIT (1004) 122 CTR (Cal) 262 :(1994) 209 ITR 508 (Cal.) where the point in issue was whether a receipt on account of transport/freight subsidy was of a revenue nature and was inseparably connected with the business and not whether it was income derived from the business of the industrial undertaking and eligible for deduction u/s 80HH/80IA/80IB of the Income Tax Act. 1961? 3. In the facts and c…

M/S H.M. Steel Ltd., Sangrur vs. Addl. CIT, Sangrur

In the result, this appeal of the Revenue is partly allowed

ITA 366/CHANDI/2013[2008-09]Status: DisposedITAT Chandigarh05 Nov 2018AY 2008-09

Bench: Shri Sanjay Garg & Dr. B.R.R. Kumarआयकर अपील सं Ita No. 366/Chd/2013 "नधा"रण वष" / Assessment Year : 2008-09

For Appellant: Sh. N.K.Garg, AdvocateFor Respondent: Smt. Chanderkanta, Sr.DR
Section 234BSection 80Section 80ISection 8O

…Subsidy was rightly taken into consideration by the assessee in working out the profits and gains of the business undertaking relying on the decision of Calcutta High Court in the case of Merino Ply and Chemicals Ltd. Vs. CIT (1004) 122 CTR (Cal) 262 :(1994) 209 ITR 508 (Cal.) where the point in issue was whether a receipt on account of transport/freight subsidy was of a revenue nature and was inseparably connected with the business and not whether it was income derived from the business of the industrial undertaking and eligible for deduction u/s 80HH/80IA/80IB of the Income Tax Act. 1961? 3. In the facts and c…

Assistant Commissioner of Income Tax, Ichalkaranji vs. Parikh Shankarlal Kundanmal, Kolhapur

In the result, appeals of Revenue and the Cross Objections by the assessee are partly allowed

ITA 736/PUN/2017[2009-10]Status: DisposedITAT Pune31 May 2018AY 2009-10

Bench: Ms. Sushma Chowla, Jm आयकर अपीऱ सं. / Ita Nos.733 To 736/Pun/2017 यििाारण वषा / Assessment Years : 2004-05 To 2006-07 & 2009-10

For Appellant: M.K. KulkarniFor Respondent: Dr. Vivek Aggarwal
Section 143(3)Section 80I

…आयकर अपीऱीय अधिकरण पुणे न्यायपीठ एक-सदस्य मामऱा पुणे में IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE सुश्री सुषमा चावऱा, न्याययक सदस्य के समक्ष BEFORE MS. SUSHMA CHOWLA, JM आयकर अपीऱ सं. / ITA Nos.733 to 736/PUN/2017 यििाारण वषा / Assessment Years : 2004-05 to 2006-07 & 2009-10 Assistant Commissioner of Income Tax, Ichalkaranji Circle, Ichalkaranji …. अऩीऱाथी/Appellant Vs. Parikh Shankarlal Kundanmal, 9/439-8-B, Station Road, Ichalkaranji, Distt.-Kolhapur PAN : ABIPP0423H …. प्रत्यथी / Respondent प्रत्याक्षेप सं./CO Nos.22 to 25/PUN/2018 यििाारण वषा / Assessment Years : 2004-05 to 2006-07 & 200…

Assistant Commissioner of Income Tax, Ichalkaranji vs. Parikh Shankarlal Kundanmal, Kolhapur

In the result, appeals of Revenue and the Cross Objections by the assessee are partly allowed

ITA 735/PUN/2017[2006-07]Status: DisposedITAT Pune31 May 2018AY 2006-07

Bench: Ms. Sushma Chowla, Jm आयकर अपीऱ सं. / Ita Nos.733 To 736/Pun/2017 यििाारण वषा / Assessment Years : 2004-05 To 2006-07 & 2009-10

For Appellant: M.K. KulkarniFor Respondent: Dr. Vivek Aggarwal
Section 143(3)Section 80I

…आयकर अपीऱीय अधिकरण पुणे न्यायपीठ एक-सदस्य मामऱा पुणे में IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE सुश्री सुषमा चावऱा, न्याययक सदस्य के समक्ष BEFORE MS. SUSHMA CHOWLA, JM आयकर अपीऱ सं. / ITA Nos.733 to 736/PUN/2017 यििाारण वषा / Assessment Years : 2004-05 to 2006-07 & 2009-10 Assistant Commissioner of Income Tax, Ichalkaranji Circle, Ichalkaranji …. अऩीऱाथी/Appellant Vs. Parikh Shankarlal Kundanmal, 9/439-8-B, Station Road, Ichalkaranji, Distt.-Kolhapur PAN : ABIPP0423H …. प्रत्यथी / Respondent प्रत्याक्षेप सं./CO Nos.22 to 25/PUN/2018 यििाारण वषा / Assessment Years : 2004-05 to 2006-07 & 200…

Assistant Commissioner of Income Tax, Ichalkaranji vs. Parikh Shankarlal Kundanmal, Kolhapur

In the result, appeals of Revenue and the Cross Objections by the assessee are partly allowed

ITA 734/PUN/2017[2005-06]Status: DisposedITAT Pune31 May 2018AY 2005-06

Bench: Ms. Sushma Chowla, Jm आयकर अपीऱ सं. / Ita Nos.733 To 736/Pun/2017 यििाारण वषा / Assessment Years : 2004-05 To 2006-07 & 2009-10

For Appellant: M.K. KulkarniFor Respondent: Dr. Vivek Aggarwal
Section 143(3)Section 80I

…आयकर अपीऱीय अधिकरण पुणे न्यायपीठ एक-सदस्य मामऱा पुणे में IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE सुश्री सुषमा चावऱा, न्याययक सदस्य के समक्ष BEFORE MS. SUSHMA CHOWLA, JM आयकर अपीऱ सं. / ITA Nos.733 to 736/PUN/2017 यििाारण वषा / Assessment Years : 2004-05 to 2006-07 & 2009-10 Assistant Commissioner of Income Tax, Ichalkaranji Circle, Ichalkaranji …. अऩीऱाथी/Appellant Vs. Parikh Shankarlal Kundanmal, 9/439-8-B, Station Road, Ichalkaranji, Distt.-Kolhapur PAN : ABIPP0423H …. प्रत्यथी / Respondent प्रत्याक्षेप सं./CO Nos.22 to 25/PUN/2018 यििाारण वषा / Assessment Years : 2004-05 to 2006-07 & 200…

Assistant Commissioner of Income Tax, Ichalkaranji vs. Parikh Shankarlal Kundanmal, Kolhapur

In the result, appeals of Revenue and the Cross Objections by the assessee are partly allowed

ITA 733/PUN/2017[2004-05]Status: DisposedITAT Pune31 May 2018AY 2004-05

Bench: Ms. Sushma Chowla, Jm आयकर अपीऱ सं. / Ita Nos.733 To 736/Pun/2017 यििाारण वषा / Assessment Years : 2004-05 To 2006-07 & 2009-10

For Appellant: M.K. KulkarniFor Respondent: Dr. Vivek Aggarwal
Section 143(3)Section 80I

…आयकर अपीऱीय अधिकरण पुणे न्यायपीठ एक-सदस्य मामऱा पुणे में IN THE INCOME TAX APPELLATE TRIBUNAL PUNE BENCH “SMC”, PUNE सुश्री सुषमा चावऱा, न्याययक सदस्य के समक्ष BEFORE MS. SUSHMA CHOWLA, JM आयकर अपीऱ सं. / ITA Nos.733 to 736/PUN/2017 यििाारण वषा / Assessment Years : 2004-05 to 2006-07 & 2009-10 Assistant Commissioner of Income Tax, Ichalkaranji Circle, Ichalkaranji …. अऩीऱाथी/Appellant Vs. Parikh Shankarlal Kundanmal, 9/439-8-B, Station Road, Ichalkaranji, Distt.-Kolhapur PAN : ABIPP0423H …. प्रत्यथी / Respondent प्रत्याक्षेप सं./CO Nos.22 to 25/PUN/2018 यििाारण वषा / Assessment Years : 2004-05 to 2006-07 & 200…

Rajasthan State Industrial Development & Investment Corp. Ltd., Jaipur vs. ACIT, Jaipur

In the result, both set of cross appeals for the respective assessment years are disposed off with above directions

ITA 380/JPR/2017[2013-14]Status: DisposedITAT Jaipur29 Mar 2018AY 2013-14
For Appellant: Shri P C ParwalFor Respondent: Shri Varindar Mehta (CIT) fu/kZkfjrh dh vksj ls@
Section 115JSection 14ASection 80I

…ion u/s 80IA (4)(iii). 4.5 The Hon’ble Supreme Court in case of CIT vs. Meghalaya Steels Ltd. 383 ITR 217 after considering the decision of Liberty India and after approving the decision of Hon’ble Calcutta High Court in Marino Ply and Chemicals Ltd. vs. CIT 209 ITR 508 held that transport subsidies were inseparably connected with the business carried on by the assessee and thus, income derived from the business eligible for deduction u/s 80IB. Thus, in view of the ratio laid down by the Hon’ble Supreme Court in this case, the decision of Liberty India is not applicable. 4.6 It was further submitted that the va…

ACIT, Jaipur vs. Rajasthan State Industrial Development & Investment Corporation Ltd., Jaipur

In the result, appeals of the assessee are partly allowed and appeals of the Revenues are dismissed

ITA 323/JPR/2016[2009-10]Status: DisposedITAT Jaipur23 Feb 2018AY 2009-10
Section 143(3)

…against the export product. In such a scenario, it cannot be said that such duty exemption scheme is derived from profits and gains made by the industrial undertaking or business itself. 21. The Calcutta High Court in Merinoply & Chemicals Ltd. v. CIT [1994] 209 ITR 508, held that transport subsidies were inseparably connected with the business carried on by the assessee. In that case, the Division Bench held:— "We do not find any perversity in the Tribunal's finding that the scheme of transport subsidies is inseparably connected with the business carried on by the assessee. It is a fact that the assessee was a…

Rajasthan State Industrial Development & Investment Corp. Ltd., Jaipur vs. ACIT, Jaipur

In the result, appeals of the assessee are partly allowed and appeals of the Revenues are dismissed

ITA 94/JPR/2015[2012-13]Status: DisposedITAT Jaipur23 Feb 2018AY 2012-13
Section 143(3)

…against the export product. In such a scenario, it cannot be said that such duty exemption scheme is derived from profits and gains made by the industrial undertaking or business itself. 21. The Calcutta High Court in Merinoply & Chemicals Ltd. v. CIT [1994] 209 ITR 508, held that transport subsidies were inseparably connected with the business carried on by the assessee. In that case, the Division Bench held:— "We do not find any perversity in the Tribunal's finding that the scheme of transport subsidies is inseparably connected with the business carried on by the assessee. It is a fact that the assessee was a…

Rajasthan State Industrial Development & Investment Corp. Ltd., Jaipur vs. ACIT, Jaipur

In the result, appeals of the assessee are partly allowed and appeals of the Revenues are dismissed

ITA 93/JPR/2015[2011-12]Status: DisposedITAT Jaipur23 Feb 2018AY 2011-12
Section 143(3)

…against the export product. In such a scenario, it cannot be said that such duty exemption scheme is derived from profits and gains made by the industrial undertaking or business itself. 21. The Calcutta High Court in Merinoply & Chemicals Ltd. v. CIT [1994] 209 ITR 508, held that transport subsidies were inseparably connected with the business carried on by the assessee. In that case, the Division Bench held:— "We do not find any perversity in the Tribunal's finding that the scheme of transport subsidies is inseparably connected with the business carried on by the assessee. It is a fact that the assessee was a…

DCIT, Jaipur vs. Rajasthan State Industrial Development & Investment Corportation Ltd., Jaipur

In the result, appeals of the assessee are partly allowed and appeals of the Revenues are dismissed

ITA 208/JPR/2015[2012-13]Status: DisposedITAT Jaipur23 Feb 2018AY 2012-13
Section 143(3)

…against the export product. In such a scenario, it cannot be said that such duty exemption scheme is derived from profits and gains made by the industrial undertaking or business itself. 21. The Calcutta High Court in Merinoply & Chemicals Ltd. v. CIT [1994] 209 ITR 508, held that transport subsidies were inseparably connected with the business carried on by the assessee. In that case, the Division Bench held:— "We do not find any perversity in the Tribunal's finding that the scheme of transport subsidies is inseparably connected with the business carried on by the assessee. It is a fact that the assessee was a…

DCIT, Jaipur vs. Rajasthan State Industrial Development & Investment Corportation Ltd., Jaipur

In the result, appeals of the assessee are partly allowed and appeals of the Revenues are dismissed

ITA 207/JPR/2015[2011-12]Status: DisposedITAT Jaipur23 Feb 2018AY 2011-12
Section 143(3)

…against the export product. In such a scenario, it cannot be said that such duty exemption scheme is derived from profits and gains made by the industrial undertaking or business itself. 21. The Calcutta High Court in Merinoply & Chemicals Ltd. v. CIT [1994] 209 ITR 508, held that transport subsidies were inseparably connected with the business carried on by the assessee. In that case, the Division Bench held:— "We do not find any perversity in the Tribunal's finding that the scheme of transport subsidies is inseparably connected with the business carried on by the assessee. It is a fact that the assessee was a…

ACIT, Jaipur vs. Rajasthan State Industrial Development & Investment Corp., Jaipur

In the result, appeals of the assessee are partly allowed and appeals of the Revenues are dismissed

ITA 421/JPR/2014[2010-11]Status: DisposedITAT Jaipur23 Feb 2018AY 2010-11
Section 143(3)

…against the export product. In such a scenario, it cannot be said that such duty exemption scheme is derived from profits and gains made by the industrial undertaking or business itself. 21. The Calcutta High Court in Merinoply & Chemicals Ltd. v. CIT [1994] 209 ITR 508, held that transport subsidies were inseparably connected with the business carried on by the assessee. In that case, the Division Bench held:— "We do not find any perversity in the Tribunal's finding that the scheme of transport subsidies is inseparably connected with the business carried on by the assessee. It is a fact that the assessee was a…

ACIT, Jaipur vs. Rajasthan State Industrial Development & Investment Corp., Jaipur

In the result, appeals of the assessee are partly allowed and appeals of the Revenues are dismissed

ITA 420/JPR/2014[2009-10]Status: DisposedITAT Jaipur23 Feb 2018AY 2009-10
Section 143(3)

…against the export product. In such a scenario, it cannot be said that such duty exemption scheme is derived from profits and gains made by the industrial undertaking or business itself. 21. The Calcutta High Court in Merinoply & Chemicals Ltd. v. CIT [1994] 209 ITR 508, held that transport subsidies were inseparably connected with the business carried on by the assessee. In that case, the Division Bench held:— "We do not find any perversity in the Tribunal's finding that the scheme of transport subsidies is inseparably connected with the business carried on by the assessee. It is a fact that the assessee was a…

Rajasthan State Industrial Development & Investment Corp. Ltd., Jaipur vs. ACIT, Jaipur

In the result, appeals of the assessee are partly allowed and appeals of the Revenues are dismissed

ITA 313/JPR/2014[2010-11]Status: DisposedITAT Jaipur23 Feb 2018AY 2010-11
Section 143(3)

…against the export product. In such a scenario, it cannot be said that such duty exemption scheme is derived from profits and gains made by the industrial undertaking or business itself. 21. The Calcutta High Court in Merinoply & Chemicals Ltd. v. CIT [1994] 209 ITR 508, held that transport subsidies were inseparably connected with the business carried on by the assessee. In that case, the Division Bench held:— "We do not find any perversity in the Tribunal's finding that the scheme of transport subsidies is inseparably connected with the business carried on by the assessee. It is a fact that the assessee was a…

Rajasthan State Industrial Development & Investment Corp. Ltd., Jaipur vs. DCIT, Jaipur

In the result, appeals of the assessee are partly allowed and appeals of the Revenues are dismissed

ITA 311/JPR/2014[2009-10]Status: DisposedITAT Jaipur23 Feb 2018AY 2009-10
Section 143(3)

…against the export product. In such a scenario, it cannot be said that such duty exemption scheme is derived from profits and gains made by the industrial undertaking or business itself. 21. The Calcutta High Court in Merinoply & Chemicals Ltd. v. CIT [1994] 209 ITR 508, held that transport subsidies were inseparably connected with the business carried on by the assessee. In that case, the Division Bench held:— "We do not find any perversity in the Tribunal's finding that the scheme of transport subsidies is inseparably connected with the business carried on by the assessee. It is a fact that the assessee was a…

DCIT, Chennai vs. Arjun Chemicals Private Ltd., Chengalput

In the result the appeals of the Revenue stands dismissed

ITA 1270/CHNY/2014[2009-10]Status: DisposedITAT Chennai23 Feb 2017AY 2009-10

Bench: Shri N.R.S. Ganesan & Shri D.S. Sunder Singhआयकर अपील सं./Ita No. : 1268, 1269 & 1270/Mds/2014 िनधा"रण वष" / Assessment Year : 2007-08, 2008-09 & 2009-10 The Deputy Commissioner Of M/S. Arjun Chemicals Pvt. Ltd., Income Tax, V. Ii Floor, 149 Velachery-Tambaram Company Circle –I(1), High Road, Pallikaranai, Chennai – 34. Chennai - 600 100. Pan : Aaaca5195M (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri Shiva Srinivas, Jcit ""यथ" क" ओर से/Respondent By : Shri S. Ramamurthy, Advocate

For Appellant: Shri Shiva Srinivas, JCITFor Respondent: Shri S. Ramamurthy, Advocate
Section 80I

…o neutralize the incidence of customs duty payment on the import content of the export product which is provided for by credit to customs duty against the export product. Referring to the judgment of Calcutta High Court in Merino Ply & Chemicals Ltd v CIT, 209 ITR 508 [1994], the Apex court found that the Calcutta judgment, the legal provisions of the Income Tax Act has been correctly appreciated. In fact, the observation made by the Calcutta High Court was reproduced by the Apex Court. The Calcutta High Court in fact found that transport subsidiary is inseparably connected with the business carried on by the…

DCIT, Chennai vs. Arjun Chemicals Private Ltd., Chengalput

In the result the appeals of the Revenue stands dismissed

ITA 1269/CHNY/2014[2008-09]Status: DisposedITAT Chennai23 Feb 2017AY 2008-09

Bench: Shri N.R.S. Ganesan & Shri D.S. Sunder Singhआयकर अपील सं./Ita No. : 1268, 1269 & 1270/Mds/2014 िनधा"रण वष" / Assessment Year : 2007-08, 2008-09 & 2009-10 The Deputy Commissioner Of M/S. Arjun Chemicals Pvt. Ltd., Income Tax, V. Ii Floor, 149 Velachery-Tambaram Company Circle –I(1), High Road, Pallikaranai, Chennai – 34. Chennai - 600 100. Pan : Aaaca5195M (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri Shiva Srinivas, Jcit ""यथ" क" ओर से/Respondent By : Shri S. Ramamurthy, Advocate

For Appellant: Shri Shiva Srinivas, JCITFor Respondent: Shri S. Ramamurthy, Advocate
Section 80I

…o neutralize the incidence of customs duty payment on the import content of the export product which is provided for by credit to customs duty against the export product. Referring to the judgment of Calcutta High Court in Merino Ply & Chemicals Ltd v CIT, 209 ITR 508 [1994], the Apex court found that the Calcutta judgment, the legal provisions of the Income Tax Act has been correctly appreciated. In fact, the observation made by the Calcutta High Court was reproduced by the Apex Court. The Calcutta High Court in fact found that transport subsidiary is inseparably connected with the business carried on by the…

DCIT, Chennai vs. Arjun Chemicals Private Ltd., Chengalput

In the result the appeals of the Revenue stands dismissed

ITA 1268/CHNY/2014[2007-08]Status: DisposedITAT Chennai23 Feb 2017AY 2007-08

Bench: Shri N.R.S. Ganesan & Shri D.S. Sunder Singhआयकर अपील सं./Ita No. : 1268, 1269 & 1270/Mds/2014 िनधा"रण वष" / Assessment Year : 2007-08, 2008-09 & 2009-10 The Deputy Commissioner Of M/S. Arjun Chemicals Pvt. Ltd., Income Tax, V. Ii Floor, 149 Velachery-Tambaram Company Circle –I(1), High Road, Pallikaranai, Chennai – 34. Chennai - 600 100. Pan : Aaaca5195M (अपीलाथ"/Appellant) (""यथ"/Respondent) अपीलाथ" क" ओर से/Appellant By : Shri Shiva Srinivas, Jcit ""यथ" क" ओर से/Respondent By : Shri S. Ramamurthy, Advocate

For Appellant: Shri Shiva Srinivas, JCITFor Respondent: Shri S. Ramamurthy, Advocate
Section 80I

…o neutralize the incidence of customs duty payment on the import content of the export product which is provided for by credit to customs duty against the export product. Referring to the judgment of Calcutta High Court in Merino Ply & Chemicals Ltd v CIT, 209 ITR 508 [1994], the Apex court found that the Calcutta judgment, the legal provisions of the Income Tax Act has been correctly appreciated. In fact, the observation made by the Calcutta High Court was reproduced by the Apex Court. The Calcutta High Court in fact found that transport subsidiary is inseparably connected with the business carried on by the…

M/S. Nanda Mint & Pine Chemicals Ltd., New Delhi vs. ACIT, New Delhi

In the result, appeal of the Revenue is dismissed

ITA 6172/DEL/2012[2009-10]Status: DisposedITAT Delhi08 Apr 2016AY 2009-10

Bench: Smt. Diva Singh & Sh. O.P. Kantassessment Year: 2009-10 M/S. Nanda Mint & Pine Vs. Asstt. Commissioner Of Income Tax, Chemicals Ltd., 1/10, Munshi Circle-13(1), New Delhi Niketan, Asaf Ali Road, Near Kamala Market, New Delhi Gir/Pan : Aaccn0965G (Appellant) (Respondent) Appellant By S/Sh. K. Sampath & Raj Kumar, Advocates Respondent By Sh. P. Dam Kanunjna, Sr.Dr & Assessment Year: 2008-09 Asstt. Commissioner Of Income Vs. M/S. Nanda Mint & Pine Chemicals Tax, Circle-13(1), Room No. 406, Ltd., 1/10, Munshi Niketan, Asaf Ali C.R. Building, I.P. Estate, New Road, Near Kamala Market, New Delhi Delhi Gir/Pan : Aaccn0965G (Appellant) (Respondent) Appellant By Smt. Parmita M. Biswas, Cit(Dr) Respondent By S/Sh. K. Sampath & Raj Kumar, Advocates Date Of Hearing 09.03.2016 Date Of Pronouncement 08.04.2016 Order Per O.P. Kant, A.M.: These Two Appeals Of The Revenue & The Assessee Are Preferred Against Two Separate Orders Dated 08.07.2011 & 14.11.2012 Of The Commissioner Of Income-Tax( Appeals)-Xvi, New Delhi For Assessment Year 2008-09 & 2009- Ays: 2008-09 & 2009-10 10 Respectively. Since The Common Issue Of Deduction Under Section 80Ib Of The Income-Tax Act, 1961 Is Involved In Both The Appeals, These Appeals Are Heard Together & Disposed Of By This Consolidated Order.

Section 143(2)Section 80Section 80I

…duty against the export product. In such a scenario, it cannot be said that such duty exemption scheme is derived from profits and gains made by the industrial undertaking or business itself. 21. 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. In that case, the Division Bench held:- "We do not find any perversity in the Tribunal's finding that the scheme of transport subsidies is inseparably connected with the business carried on by the assessee. It is a fact that the assessee…