TMI Blog2009 (11) TMI 62X X X X Extracts X X X X X X X X Extracts X X X X ..... claimed by the assessee being the profits derived from industrial undertaking Unit II - . According to the Assessing Authority, the said profit includes export incentives of Rs. 3,08,40,231/- including DEPB profits – CIT(A) allowed the deduction – ITAT denied the deduction – held that - Duty Draw Back and DEPB are incentives, which flow from the schemes framed by the Central Govt. or under Section 75 of the Customs Act, 1962 and these incentive profits do not fall within expression “profits derived from industrial undertaking in Section 80-IB of the Act – benefit not to be allowed – decided in favor of revenue. - 629 of 2009 - - - Dated:- 19-11-2009 - MR. S ATIS H KUMAR MITTAL and MR. MEHINDER SINGH SULLAR, JJ. Presen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... assessee under section 80-IB of the Act, which was claimed by the assessee being the profits derived from industrial undertaking Unit II. According to the Assessing Authority, the said profit includes export incentives of Rs. 3,08,40,231/- including DEPB profits. Feeling aggrieved, the assessee filed an appeal before the Commissioner of Income Tax (Appeals), Rohtak [hereinafter referred to as `the CIT (A)], who vide his order dated 23.12.2008 accepted the appeal and while relying upon the judgment of the Delhi High Court in Commissioner of Income Tax v. Eltek SGS Pvt. Ltd., (2008) 300 ITR 6, held that the assessee is entitled for exemption under section 80-IB of the Act, in view of the fact that profit of DEPB would be treated to have been ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 007 CTR 243, which has been relied upon by the learned ITAT in the aforesaid impugned order, has been affirmed by the Hon'ble Supreme Court in Liberty India v.Commissioner of Income Tax, (2009) 28 Direct Taxes Reporter Judgments 73, wherein while dismissing the appeal of the assessee, it has been concluded that Duty Draw Back and DEPB are incentives, which flow from the schemes framed by the Central Govt. or under Section 75 of the Customs Act, 1962 and these incentive profits do not fall within expression "profits derived from industrial undertaking in Section 80-IB of the Act".Therefore, Duty Draw Back and DEPB do not form part of net profits of the industrial undertaking for the purposes of Section 80-IB of the Act. 5. In view of the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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