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2014 (1) TMI 1022 - AT - Income TaxDeduction u/s 80IB - Whether refund of excise duty be treated as income from manufacturing activity - Held that:- Following CIT vs. Dharampal Premchand [2008 (11) TMI 49 - HIGH COURT DELHI] - The excise duty refund in the case of the appellant is directly linked with the manufacturing activity and is production linked incentive, which arises out of manufacturing activity of Appellant's Industrial Undertaking at Jammu - Such excise duty refund is therefore, a first degree source of receipt linked with the manufacturing activity of the undertaking - It is derived from the business of the industrial undertaking and falls within the parameters laid down in Section 80IB of the IT Act - There is a distinction between the treatment to be given to Excise Duty Refund and Duty Draw Back/DEPB, the AO is directed to treat excise duty refund as profit derived from the business of the Industrial Undertaking, while computing the eligible deduction u/s. 80-IB of the Income Tax Act - The CIT(A) was justified in his order - Decided in favour of assessee.
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