Allowing the appeal of the assessee the Court held that ; revenue subsidies received by the assessee towards reimbursement of cost could be said to have direct nexus with profits and gains of industrial undertaking and eligible for deduction.Followed CIT v. Meghalaya Steel Ltd (2016) 383 ITR 217 ( SC) (AY. 2001-02)
Kashmir Tubes v. ITO (2017) 85 taxmann.com 299 (2018) 300 CTR 541 (J&K) (HC)
S. 80IB: Industrial undertakings – Interest Subsidy – Revenue subsidies received by the assessee towards reimbursement of cost could be said to have direct nexus with profits and gains of industrial undertaking and eligible for deduction.