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2009 (11) TMI 59 - PUNJAB AND HARYANA HIGH COURTDeduction u/s 80IB – Duty draw back – Duty Entitlement Passbook DEPB - the assessee, who derived income from manufacturing of handloom goods and its export, claimed deduction on the business profit, which included the amount of export incentives received on account of the Duty Draw Back and the Duty Entitlement Pass Book Scheme (hereinafter referred to as `DEPB') under Section 80-IB of the Act. The Assessing Officer, vide his order dated 31.3.2008, while following the decision of the Supreme Court in CIT v. Sterling Foods – held that - decision of this Court in the case of Liberty India has been affirmed by the Hon'ble Supreme Court in Liberty India v. Commissioner of Income-Tax, wherein while dismissing the appeal of the assessee, it has been concluded that Duty Draw Back and DEPB are incentives, which flow from the schemes framed by the Central Govt. or under Section 75 of the Customs Act, 1962 and these incentive profits do not fall within expression “profits derived from industrial undertaking in Section 80-IB of the Act. Therefore, Duty Draw Back and DEPB do not form part of net profits of the industrial undertaking for the purposes of Section 80-IB of the Act. – Deduction not be allowed - Decided against the assessee
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