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2019 (7) TMI 1226 - HC - Income TaxExemption of the income arising out of its export business - Whether the duty drawback of Appellant which is included in the purchase of the appellant which forms the part of expenses of the eligible unit ? - HELD THAT:- The case of the assessee seeking exemption of the income arising out of its export business, is squarely covered by the Judgment of the Supreme Court in the case of Liberty India [2009 (8) TMI 63 - SUPREME COURT] since the receipts in question arise out of the duty draw back payment of the Government of India. In Liberty India, as is well known, the Supreme Court had held that the DEPB benefits (similar to the duty draw back payments) would not qualify for exemption from tax since the same are not directly connected to the assessee's export business. Assessee placed reliance on the subsequent decision of the Supreme Court in the case of CIT V/s. Meghalaya Steels Ltd. [2016 (3) TMI 375 - SUPREME COURT] . We are conscious that in such decision, the Supreme Court had granted the benefit of exemption in respect of a subsidy received from the Government. In the process, the Supreme Court had held that the ratio laid down by the Supreme Court in the case of Liberty India (supra) would not apply in such a case. However, we cannot apply the decision of the Supreme Court in the case of Meghalaya Steels Ltd. (Supra) since the case of the present assessee is squarely covered by the decision in the case of Liberty India (Supra). No question of law arises.
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