TMI Blog2014 (8) TMI 524X X X X Extracts X X X X X X X X Extracts X X X X ..... er their genesis is from the beneficiary scheme formulated under Central Excise Act etc. - They are the ancillary profit - the AO is directed to allow the deduction u/s 80IC of the Act as per law excluded on the DEPB receipts. CIT(A) has clearly observed that the assessee had received ₹ 7,29,34,000/- and the balance sum was shown as outstanding and the assessee was maintaining accounts on mercantile basis - assessee himself has included the amount in the net profit and claimed deduction u/s 80IC - the entire amount had to be considered and has rightly been considered by CIT(A) – Decided against Assessee. - ITA No. 807/Del/2013 - - - Dated:- 7-8-2014 - Shri S. V. Mehrotra And Shri C. M. Garg,JJ. For the Appellant : Shri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in appeal and has taken following grounds of appeal: 1. That the Authority below were wholly unjustified both on law and facts of the case in disallowance the deduction as claimed by the appellant under section 80-IC of the Income-tax Act, 1961 on the Duty Draw back of ₹ 13,98,31,925/-. Various observation made by the Authorities below in their respective orders are incorrect and untenable. 2.That without prejudice to the grounds no. 1 above, the authorities below had wrongly taken the figure of Duty drawback at ₹ 13,98,31,925/- as against the correct figure of Duty Draw back actually received at ₹ 7,29,34,000/-. The Authorities below had either ignored or had not appreciated the submissions made by the appellant on ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... reme Court in the case of Liberty India (supra), is not applicable to the facts of assessee s case because the decision in the case of Liberty India (supra) was rendered with reference to Sections 80I, 80IA and 80IB and not with reference to section 80IC. Further, the decision in the case of Liberty India relates to A.Y. 2001-02 whereas the provisions of section 80IC were inserted by Finance Act 2003 w.e.f. 1-4-2004 and, therefore, the Hon ble Supreme Court had no occasion to consider section 80IC. Further, the marginal note to sections 80IA, 80IB etc. talks about deduction in respect of profits and gains from certain industrial undertakings or enterprises, while marginal note to section 80IC reads special provision in respect of certain u ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... treated as business income and they have been assessed to tax accordingly. Therefore, deduction u/s 80IC should have been allowed on the duty draw back. 3.7. Ld. Counsel further pointed out that in A.Y. 2005-06 deduction u/s 80IC had been allowed on duty draw back also, as is evident from the copy of assessment order placed at pages 45 to 48 of the PB. Similarly, for A.Y. 2006-07( assessment order available at pages 49-51 of the PB), the deductions have been allowed on duty draw back also. For A.Y. 2007-08 (Assessment order available at page 52 of the PB), 80IC deduction has been allowed. 4. Ld. CIT(DR) submitted that the issue is squarely covered by the Tribunal s own decision dated 14-6-2013 in assessee s own case for A.Y. 2009-10. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The learned counsel for the assessee has placed on record a note as to how deduction on EPB receipts under sec. 80IC are admissible. However, we find that this issue is squarely covered against the assessee by the decision of Hon ble Supreme Court in the case of Liberty India vs. CIT reported in 317 ITR 218. Hon ble Court has held that DEPB receipts are not derived from an industrial undertaking rather their genesis is from the beneficiary scheme formulated under Central Excise Act etc. They are the ancillary profit. The learned counsel for the assessee submitted that the Hon ble Supreme Court has not taken into consideration the amendment in sec. 28 which ha been given effect from Ist of April 1998. This amendment suggests that on sale o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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