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2013 (12) TMI 180 - ITAT MUMBAIDeduction u/s 80HHF – Whether the duty draw back has to be excluded or included in the business income of the assessee while computing profits of business u/s 80HHF - Held that:- Following Liberty India Vs. CIT [2009 (8) TMI 63 - SUPREME COURT] – According to explanation to section 80HHF - Duty drawback should be treated as separate items of revenue or income and accounted for accordingly - Duty drawback, DEPB benefits, rebates etc. cannot be credited against the cost of manufacture of goods debited in the Profit & Loss account for purposes of Sections 80-IA/80-IB as such remissions (credits) would constitute independent source of income beyond the first degree nexus between profits and the industrial undertaking - Duty drawback receipt/DEPB benefits do not form part of the net profits of eligible industrial undertaking for the purposes of Sections 80I/80-IA/80-IB – The issue restored for fresh decision. Interest income to be treated as business income – Held that:- Following CIT Vs. K. Ravindranathan Nayar [2007 (11) TMI 10 - Supreme Court of India] – The issue restored for fresh decision.
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