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2017 (3) TMI 482 - AT - Income TaxEntitlement for deduction U/s 80IB - amount under the head VKGUY [Vishesh Krishi Gram Udhyog Yojana ]and on account of DEPB - Held that:- The Hon'ble Supreme Court in the case of Liberty India Vs. CIT (2009 (8) TMI 63 - SUPREME COURT) has held that Section 80IB/80IA are the code by themselves as they contain both substantive as well as procedural provision. It is evident that Section 80IB provides for allowing of deduction in respect of profits and gains derived from the eligible business. It is held by the Hon'ble Supreme Court that the words “derived from” is narrower in connotation as compared to the words “attributable to”. After analyzing the provision, it was held by the Hon'ble Supreme Court that the DEPB is an incentive. It is given under Duty Exemption Remission Scheme. Essentially, it is an export incentive. No doubt, the object behind DEPB is to neutralize the incidence of customs duty payment on the import content of export product. This neutralization is provided for by credit to customs duty against export product. Hon'ble Supreme Court has held that the duty drawback receipt/DEPB benefits do not form part of the net profits of eligible industrial undertaking for the purposes of Sections 80I/80IA/80IB of the Act. - Decided aganst assessee
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