TMI Blog2005 (6) TMI 475X X X X Extracts X X X X X X X X Extracts X X X X ..... in the case of Ritesh Industries Ltd. [ 2004 (9) TMI 36 - DELHI HIGH COURT] fully applies to the facts and the issue involved in the instant case of the assessee and so, respectfully following the decision ( supra ), which is binding upon this Tribunal, being a decision of jurisdictional High Court, it is held that a sum received by the assessee on account of duty drawback cannot be considered as income derived from the business of an industrial undertaking so as to entitle the assessee to a deduction u/s 80-IB and, hence, the order of the CIT (Appeals) in allowing the impugned deduction is set aside. Ground of appeal taken by the Revenue is allowed. In the result, the appeal filed by the Revenue is allowed. - D.R. SINGH, J. C. Aggarwal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see and so the duty draw back amounting to Rs. 1,74,316 was a trading receipt of the industrial undertaking having direct nexus with the activity of such industrial undertaking and, therefore, it forms part of the income derived from such industrial undertaking. The CIT(Appeals) coming to the above conclusion has placed reliance on the decision of the Delhi Bench of the Tribunal in the case of Dy. CIT v. Metro Tyres Ltd. [2001] 79 ITD 557 wherein the Tribunal held as under : "There must be direct nexus between the income and the industrial undertaking meaning thereby, the source of income must be the industrial undertaking if the source of the income is other than the industrial undertaking than it cannot be said that such income is derived ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, upheld with reference to this item. " 4 Before me, the learned Departmental Representative for the Revenue, submitted that in this case, the CIT(Appeals) was not justified in allowing the deduction claimed by the assessee under section 80-IB with regard to duty drawback amounting to Rs. 1,74,316. In support of his contention, he placed reliance on the recent decision of jurisdictional High Court of Delhi in the case of CIT v. Ritesh Industries Ltd. [2005] 274 ITR 324 , wherein their Lordships applying the decision of Apex Court in the case of CIT v. Sterling Foods [1999] 237 ITR 579 and referring to CIT v. Jameel Leathers Uppers [2000] 246 ITR 97 (Mad.); CIT v. Viswanathan Co. [2003] 261 ITR 737 (Mad.) held as under : "There must be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ness of the industrial undertaking and, hence, the assessee was entitled to deduction in respect of this duty draw-back. He further contended that the decision of the jurisdictional High Court was not under section 80-IB and was only under section 80-I so, it does not apply to the issue involved in the instant case of the assessee because in the instant case, this Tribunal is required to adjudicate whether or not the assessee is entitled to deduction with regard to duty draw-back under section 80-IB. In support of his contention, he placed reliance on the decision of Chandigarh Bench of the Tribunal in the case of ITO v. Kiran Enterprises [2005] 92 TTJ (Chd.) 104. 6. I have considered the rival submissions of both the parties, perused the r ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he same to be an income derived from a business of industrial undertaking under section 80-IB of the Act. Ratio of the decision of the Hon ble Delhi High Court in the case of Ritesh Industries Ltd. (supra) fully applies to the facts and the issue involved in the instant case of the assessee and so, respectfully following the decision ( supra ), which is binding upon this Tribunal, being a decision of jurisdictional High Court, it is held that a sum of Rs. 1,74,316 received by the assessee on account of duty drawback cannot be considered as income derived from the business of an industrial undertaking so as to entitle the assessee to a deduction under section 80-IB and, hence, the order of the CIT (Appeals) in allowing the impugned deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X
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