TMI Blog2004 (6) TMI 581X X X X Extracts X X X X X X X X Extracts X X X X ..... ing of garments. For the assessment year 1996-97, the assessee has exported garments through its sister concern M/s. JB Exports and on such exports the assessee has received duty drawback from the Government of India under the Central Excise Duty Drawback Rules. The contention of the assessee before the Assessing Officer was that the goods exported were provided by M/s. JB Exports and duty draw-back received by the assessee has been passed on to the said concern and the same has been shown by M/s. JB Exports as its income. It appears that in the books of account no entry has been made by the assessee with regard to export of garments as well as the receipt of duty drawback from the Government of India. Regarding realization of sales, these ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... quota of the assessee. The learned counsel further added that since the goods exports were provided by M/s. JB Exports Ltd., sale proceeds were directly credited to the bank account of M/s. JB Exports Ltd. and duty drawback, which was received by the assessee was also passed on to its sister concern. The learned counsel in the written submissions argued that the duty drawback is merely an expenditure recouped and cannot be treated as income. In support of his contention, he placed reliance on the decision of the Tribunal in the case of Dy. CIT v. Metro Tyres Ltd. [2001] 79 ITD 557 (Delhi). 6. After careful consideration of the rival submissions and going through the impugned order of the learned CIT(A), we are inclined to concur wit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e unable to understand as to how the said decision helps the case of the assessee regarding the accrual of excise duty drawback as income in the hands of the assessee company. Exports have undoubtedly been made by the assessee company, bills have been issued by the assessee company and the claims for excise duty drawback as per the excise duty rules have been made by the assessee company on the basis of the exports made during the year. In the backdrop of these facts, we do not have the slightest reservation nor any ground to hold that the income on account of duty drawback accrued to the assessee and is liable to be included in the total income of the assessee. Now regarding the claim of the assessee that the amount received towards duty d ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
