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2016 (5) TMI 362 - AT - Income TaxReopening of assessment - exemption u/s 10BA - Held that:- No doubt, Hon’ble Apex Court in judgment cited as Liberty India (2009 (8) TMI 63 - SUPREME COURT) held that incentive profits are not profits derived from eligible business u/s 80IA/80IB, they belong to the category of ancillary profits of such undertaking. Profits derived by way of incentive, such as, DEPB/Duty drawback cannot be credited against the cost of manufacture of goods debited in the profit and loss account and they do not fall within the expression “profits derived from industrial undertaking” under section 80IB. However, judgment (supra) is not applicable to the facts and circumstances of the case because when reopening u/s 147/148 under the given circumstances is itself not permissible, the AO is not empowered to review the applicability of section 10BA. So, in the given circumstances, we are of the considered view that reassessment in this case is not permissible under any circumstances. - Decided in favour of assessee.
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