Is 'additional subsidy' received from the State Government eligible for deduction u/s 80IA of the Income Tax Act?

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Last updated: 10 July 2021
Quick Summary
The Income Tax Appellate Tribunal (ITAT) in Bangalore considered whether an 'additional subsidy' received by Hubli Electricity Supply Co. Ltd. from the State Government was eligible for deduction under Section 80IA of the Income Tax Act. The Assessing Officer (AO) disputed this, arguing that the subsidy was not 'profits derived from' the industrial undertaking, citing Supreme Court precedents. The assessee, however, claimed it as income and eligible for the deduction.

Court :
ITAT Bangalore

Brief :
This is an appeal by the Revenue against the final order dated 11.11.2016 of CIT, Hubli, relating to Assessment Year 2012-13. The grounds of appeal raised by the Revenue reads as follows:

Citation :
ITA No.570/Bang/2017

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