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2012 (7) TMI 612 - AT - Income TaxDisallowance of claim under section 80IB of the Act - assessee has failed to establish beyond doubt that there is no other activity other than manufacturing activity - assessee had admitted trading activity and of undertaking job work apart from manufacturing activity - Duty drawback receipts and DEPB benefits do not form part of the net profits of eligible industrial undertakings for the purpose of the deduction under section 80-I / 80-IA / 80-IB of the Income-tax Act, 1961 - Profits derived by way of incentives such as DEPB/Duty drawback cannot be credited against the cost of manufacture of goods debited in the profit and loss account and they do not fall within the expression "profits derived from industrial undertaking" under section 80-IB - profits and gains in question cannot be said to have been derived from the industrial undertaking and, hence, the assessee would not be eligible for relief under section 80IB of the Act - assessee’s appeal is dismissed.
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