2004 (9) TMI 36 - DELHI HIGH COURT

Deduction under section 80-I - duty drawback - industrial undertaking - "Whether the amount of 'duty drawback' can be regarded as income derived from an industrial undertaking so as to entitle the assessee to a deduction under section 80-I of the Income-tax Act, 1961?" - Merely because under the scheme to encourage exports the duty (D) is refunded subsequently by way of "duty drawback", it cannot be regarded as the profit or gain "derived" from the industrial undertaking. It may constitute profits or gains of the business by virtue of section 28 of the Act, but, it cannot be construed as profits or gains "derived" from the industrial undertaking for, its immediate and proximate source is not the industrial undertaking but the scheme for duty drawback - In view of this, the appeal is required to be allowed. We answer the question in favour of the Revenue