9911796707
TMI Blog2006 (11) TMI 163X X X X Extracts X X X X X X X X Extracts X X X X ..... ellate Tribunal was right in law in sustaining the order of the Commissioner of Income-tax (Appeals) directing the Assessing Officer to allow deduction under section 80-IB on the amount of duty drawback received by the assessee which cannot be termed as income ' derived from' an industrial undertaking as held by the hon'ble Supreme Court of India in the case of CIT v. Sterling Foods [1999] 237 ITR 579 followed by the hon'ble Madras High Court in the cases of CIT v. Jameel Leathers and Uppers [2000] 246 ITR 97 and CIT v. Viswanathan and Co. [2003] 261 ITR 737 and the hon'ble Delhi High Court in the case of CIT v. Ritesh Industries Ltd. [2005] 274 ITR 324 and also by the hon'ble Tribunal SMC Bench in the case of Asst. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... source of the import entitlements can, in the circumstances, only be said to be the Export Promotion Scheme of the Central Government where under the export entitlements become available. There must be, for the application of the words " derived from", a direct nexus between the profits and gains and the industrial undertaking. In the instant case, the nexus is not direct but only incidental. The industrial under taking exports processed sea food. By reason of such export, the Export Promotion Scheme applies. Thereunder, the assessee is entitled to import entitlements, which it can sell. The sale consideration therefrom cannot, in our view, be held to constitute a profit and gain derived from the assessee' s industrial undertaking.' ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 261 ITR 737 (Mad), CIT v. Jameel Leathers and Uppers [2000] 246 ITR 97 (Mad) and CIT v. Ritesh Industries Ltd. [2005] 274 ITR 324 (Delhi), but still, the Tribunal chose to follow the earlier orders passed by it without even adverting to these judgments and pointing out any point of distinction therein vis-a-vis the facts of the present case. Still further, the Tribunal in its wisdom has chosen to ignore the order passed by it earlier in the case of Liberty India [2007] 293 ITR 520 (P&H) upheld by this court vide order dated September 22, 2006, on the basis of the judgment of the Delhi High Court in Ritesh Industries' case [2005] 274 ITR 324, merely for the reason that there is no judgment of this court on this issue. It lost sight of th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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