TMI Blog2007 (6) TMI 484X X X X Extracts X X X X X X X X Extracts X X X X ..... are admittedly an integral part of the cost of production, and therefore, any receipts by way of reimbursement of such duties is inextricably linked with the cost of production which has to be reflected in P & L A/c of the assessee - Duty drawback is "derived from" the industrial undertaking and, therefore, eligible for relief - in favour of the assessee Decision in the matter of CIT v. India ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icals Ltd. [2005] 275 ITR 284 wherein it has been held that "Duty draw back being integral part of pricing of goods is part of the cost of production of the industrial undertaking hence, derived from" industrial undertaking and eligible for deduction u/s. 80J." 6. In view of the settle legal position, which is duly authenticate by verdict of Hon'ble Jurisdictional High Court as discussed above, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, intended to reduce the cost of production. Hence, duty draw back is a integral part of the pricing of the goods and therefore, part of the cost of production of the industrial undertaking and, therefore, duty drawback has to be treated as "derived from" the industrial undertaking. If the incentives are like CCS and import entitlement they are in the nature of general incentives though for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of production which has to be reflected in P L A/c of the assessee and, therefore, the Revenue's argument cannot be accepted. Duty drawback is "derived from" the industrial undertaking and, therefore, eligible for relief u/s.80J." It is true that the case law referred by the Tribunal was pertaining to Section-80J, but the basic principle which is settled that whether the duty drawback is an ..... X X X X Extracts X X X X X X X X Extracts X X X X
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