DEPB BENEFITS AND DUTY DRAWBACK
This query is : Resolved
PUNEET KHALE
(Querist)
07 November 2009
can we claim deduction under Section 80-IB as profit on account of DEPB and Duty Drawback credited to the Profit & Loss account.
Aditya Maheshwari
(Expert)
10 November 2009
LIBERTY INDIA vs. COMMISSIONER OF INCOME TAX
Civil Appeal No. 5891 of 2009 – SC
Decision dated 31st August, 2009
Gist:
Profit on sale of DEPB and benefits under Duty Drawback Scheme do not fall within the expression “profit derived from industrial undertaking†u/s. 80IB. Such incentives are not to be credited against the cost of goods manufactured in the profit and loss a/c for the purpose of Sec. 80IB as well as Sec. 80IA and they are independent source of income. The Supreme Court confirmed the narrower connotation that can be assigned to the expression “derived from†as against the wider connotation assignable to “attributable toâ€.
Civil Appeal No. 5891 of 2009 – SC
Decision dated 31st August, 2009
Gist:
Profit on sale of DEPB and benefits under Duty Drawback Scheme do not fall within the expression “profit derived from industrial undertaking†u/s. 80IB. Such incentives are not to be credited against the cost of goods manufactured in the profit and loss a/c for the purpose of Sec. 80IB as well as Sec. 80IA and they are independent source of income. The Supreme Court confirmed the narrower connotation that can be assigned to the expression “derived from†as against the wider connotation assignable to “attributable toâ€.
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