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2019 (10) TMI 470 - ITAT JAIPURDeduction u/s 80IB - denial under the head Duty Drawback, VKGUY and FPS Premium, being amount received from Central Government and chargeable to tax under the head “Profit and gains of business or profession” under section 28 (iiib)/(iiid) of Income tax Act - HELD THAT:- As decided in own case [2017 (3) TMI 482 - ITAT JAIPUR] DEPB is an incentive. It is given under Duty Exemption Remission Scheme. Essentially, it is an export incentive. No doubt, the object behind DEPB is to neutralize the incidence of customs duty payment on the import content of export product. This neutralization is provided for by credit to customs duty against export product. Hon'ble Supreme Court has held that the duty drawback receipt/DEPB benefits do not form part of the net profits of eligible industrial undertaking for the purposes of Sections 80I/80IA/80IB of the Act. - Decided against assessee Denying deduction u/s 80IB - business profit, noticed in form of discrepancy in quantity/valuation of business stock in survey, derived by the assessee from eligible business and disclosed under other head of income at the insistence of Survey Team - HELD THAT:- Under the double entry system of accounting, where any unaccounted stock is brought in the books of accounts, the stock account is increased by value of unaccounted stock and corresponding entry is passed whereby investment in such unaccounted stock is credited to the profit/loss account. In the instant case, it is not clear how the assessee has passed the double entry in its books of accounts and how the same has been considered for claiming deduction under section 80IB of the Act in absence of working of deduction under section 80IB of the Act on record. Further, we find that there is no specific finding recorded by the CIT(A) in this regard though the assessee has raised this ground before the CIT(A). We are accordingly constrained to set-aside the matter to the file of the CIT(A) to examine the same afresh after providing reasonable opportunity to the assessee. - Decided in favour of assessee for statistical purposes.
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