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2013 (11) TMI 729 - PUNJAB & HARYANA HIGH COURTDeduction u/s 80IB of the Income tax act – Whether Assessing Officer to exclude amount of Duty Drawback net of expenses incurred for its realization for the purpose of computing deduction u/s 80IB – Held that:- When income on DDB falls exclusively in the domain of export incentives earned by the assessee in the nature of facility provided under legislative enactments or by Government of India in its schemes and is not 'derived' from the 'business of industrial undertaking' of the assessee and lacks nexus between the profits earned and business of such industrial undertaking, even expenses incurred on receipt of such export incentives pursuant to policies and schemes of the Government, would not form part of expenses of the business. Merely because some expenses have been incurred on getting DDB incentives, which incentives have neither any direct nexus nor are derived from business of industrial undertaking and are also included in the net profits and gains of such undertaking, any expenditure having nexus with such export incentive as DDB would also not qualify for allowable deduction under Section 57 or 71 of the Act - Gross receipt of DDB incentive, without reduction of expenditure spent for its recovery, is to be excluded from allowable deductions under Section 80-IB of the Act – Decided in favor of Revenue.
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