TMI Blog2010 (1) TMI 38X X X X Extracts X X X X X X X X Extracts X X X X ..... .22 lac) – held that - , following the judgment of the Supreme Court in Liberty India (2009 -TMI - 34471 - SUPREME COURT), we set aside the judgment of the tribunal in so far as the tribunal has allowed the claim of deduction under Section 80IB in respect of (1) duty draw back; (2) export entitlement; and (3) DEPB license. The judgment of the tribunal is affirmed in so far as the claim of deductio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d of Rs.1.17 crores (consisting of Duty Drawback of Rs.81.51 lacs, Export Entitlement of Rs.8.29 lacs, Rs.14.76 lacs being DEPB licence and Exchange rate difference of Rs.13.22 lac) which were not actually derived from industrial undertaking? 3. The question in the appeal is as to whether the tribunal has committed an error in allowing a claim of deduction under Section 80IB in respect of certai ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale proceeds eligible for deduction u/s. 80IB. According to the assessee, the receipt was directly related to the process of carrying on the business of the industrial undertaking. The export invoices were made in US $ terms. When the sale proceeds of goods exported are received in India in convertible foreign exchange, the rupee equivalent of the sale proceeds is liable to vary consequent upon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... allowed under Section 80IB. The exchange rate fluctuation arises out of and is directly related to the sale transaction involving the export of goods of the industrial undertaking. The exchange rate fluctuation between the rupee equivalent of the value of the goods exported and the actual receipts which are realized arises on account of the sale transaction. The difference arises purely as a resul ..... X X X X Extracts X X X X X X X X Extracts X X X X
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