2005 (6) TMI 551 - AT - Income Tax

Summary

Issues involved: Appeal against CIT(A) order allowing deduction u/s 80-IB on duty drawback amount.

Summary:
The revenue filed an appeal against the CIT(A) order allowing deduction u/s 80-IB on duty drawback amount. The revenue contended that duty drawback cannot be considered as profit from an industrial undertaking. The assessee relied on a Tribunal decision and argued that conflicting judgments should favor the assessee. The Tribunal upheld the CIT(A) order, citing a direct link between duty drawback and business activity, following the decision of the Hon'ble Gujarat High Court. The Tribunal dismissed the revenue's appeal based on these grounds.