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2023 (3) TMI 822 - AT - Income TaxDeduction u/s. 80IB - allowability of income under Duty Draw Back and MEIS scheme for the profits derived from eligible industrial undertaking - Effect of subsequent decision of Supreme court - AO has referred to the decision of the Hon’ble Supreme Court in the case of M/s. Liberty India [2009 (8) TMI 63 - SUPREME COURT] to exclude the export incentives for the purpose of deduction u/s. 80IB(11A) - whether the decision in the case of M/s. Meghalaya Steels Limited [2016 (3) TMI 375 - SUPREME COURT] held by the Apex Court does not over ride the subsequent judgment of the Apex Court in M/s. Liberty India [2009 (8) TMI 63 - SUPREME COURT] ? - HELD THAT:- As in view of the subsequent decision of the Hon’ble Supreme Court in the case of Meghalaya Steel Ltd (supra), the findings recorded by the Ld. AO based on the decision of the Hon’ble Supreme Court in the case of Liberty India (supra) cannot be held as sustainable as in Meghalaya Steel Ltd (supra) held that the Hon’ble Himachal Pradesh High Court having wrongly interpreted the judgment in the case of CIT vs. Sterling Foods [1999 (4) TMI 1 - SUPREME COURT] and Liberty India (supra) to arrive at the opposite conclusion has held to be wrongly decided. Since the Hon’ble Supreme Court has overruled its earlier decision in the case of Liberty India (supra) and now the decision in the case of Meghalaya Steel Ltd (supra) holds good. In the assessee’s own case for the AY 2017-18 [2022 (6) TMI 350 - ITAT VISAKHAPATNAM] this Bench has held that the export entitlements is an income assessable under the head “profits or gains from business or profession” as per clause (iiib) and (iiid) to section 28 of the IT Act, 1961. Respectfully following the above precedents, we hold that the export incentives such as Duty Draw Back and MEIS is an income assessable under the head ‘profits or gains from business or profession’ as per clause (iiib) and (iiid) to section 28 of the Act. In view of the above, the grounds raised by the Revenue are dismissed.
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