CIT vs M/S MEGHALAYA STEELS LTD

The Supreme Court addressed the applicability of Sections 80-IB and 80-IC of the Income Tax Act, 1961, in the context of deductions for subsidies received by the respondent, M/s. Meghalaya Steels Ltd. The Court held that subsidies received by the respondent were revenue receipts and thus did not qualify for deductions under Section 80-IB(4). The judgment of the Gauhati High Court was upheld, affirming the disallowance of the deduction claims made by the respondent.