JANAK RAJ BANSAL Vs. COMMISSIONER OF INCOME TAX

JUDGEMENT

(1.) THESE appeals are being disposed of by a single judgment as the question of law involved in all the appeals is the same and reads as follows: Whether in the facts and circumstances of the case, the learned Tribunal is right to hold the transport subsidy received as income not derived from an industrial undertaking thereby holding the same not to be entitled to deduction under Section 80-IA of the IT Act.

(2.) IT would be pertinent to mention that we are concerned with the assessment relating to the period 1st April, 2000 and therefore Section 80 -IA as applicable at the relevant time. The relevant portion of the section reads as follows:

(3.) IN the State of Himachal Pradesh there is scarcity of rail net work. A scheme has been framed by the Central Government whereby freight/transport subsidy is provided to the industries set -up in remote areas where rail facilities are not available and some percentage of the transport expenses incurred by the industrial undertakings to transport raw material to the factory and to transport finished goods from their industries is subsidized by the Central Government. The question which arises is whether this freight subsidy is income derived from the business of the industrial undertaking and can be included in the profits eligible for deduction under Section 80 -IA