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2014 (5) TMI 970 - HC - Income TaxInterpretation of section 80HHC of the Act – Denial of claim of DEPB – Held that:- Following Topman Exports v. Commissioner of Income Tax 2012 (2) TMI 100 - SUPREME COURT OF INDIA] - DEPB has direct nexus with the cost of imports for manufacturing an export product, any amount realized by the assessees over and above the DEPB on transfer of the DEPB would represent profit on the transfer of DEPB – the matter is remitted back to the AO for fresh adjudication – Decided in favour of Assessee. Eligibility to claim deduction u/s 80IB of the Act - Whether amount of DEPB is derived from and eligible for claim on the true and correct interpretation of Section 80IB of the Act – Held that:- Following Liberty India v. Commissioner of Income Tax [2009 (8) TMI 63 - SUPREME COURT] - duty drawback, DEPB benefits, rebates etc. cannot be credited against the cost of manufacture of goods debited in the Profit & Loss account for purposes of Sections 80-IA/80-IB as such remissions (credits) would constitute independent source of income beyond the first degree nexus between profits and the industrial undertaking – Decided against Assessee.
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