Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2011 (3) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (3) TMI 1032 - HC - Income TaxDuty drawback - whether be included while computing deduction under section 80-IA - Held that:- This issue has to be decided in favour of the Revenue in view of the judgment of Liberty India v. CIT [2009 (8) TMI 63 - SUPREME COURT] wherein held that Duty drawback receipt/DEPB benefits do not form part of the net profits of eligible industrial undertaking for the purposes of Sections 80I/80-IA/80-IB . Disallowance u/s 43B - addition on account of provision for pension - Held that:- In agreement with the view of the CIT (A) that the pension scheme of the assessee does not envisage any regular contribution to any fund or trust or any other entity. The pension scheme provides that pension would be paid by the appellant to its employees on their attaining the retirement age or resigning after having rendered services for specified years. Thus, where the liability on this account accrues from year to year, the same is payable on retirement/resignation of the eligible employees. In view thereof, the ratio of the judgment of Metal Box Company of India Ltd. v. Their Workmen [1968 (8) TMI 53 - SUPREME Court] and Bharat Earth Movers v. CIT [2000 (8) TMI 4 - SUPREME Court] would clearly get attracted. For disqualifying a provision for leave encashment, a specific clause had to be inserted by the Legislature as the Legislature was conscious of the fact that this clause would not be covered by the existing clause (b) of section 43B of the Act. In favour of assessee.
|