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TMI Blog2006 (9) TMI 487X X X X Extracts X X X X X X X X Extracts X X X X ..... law arises in the appeal. Thus, the appeal is dismissed. - Hon'ble Adarsh Kumar Goel And Rajesh Bindal, JJ. For the Assessee : P. C. Jain For the Revenue : Yogesh Putney ORDER 1. This appeal has been preferred under Section 260A of the IT Act, 1961 (for short, the Act ) against the order passed by Tribunal, Delhi Bench, Delhi in ITA No. 5433/Del/2004, dt. 28th June, 2005 in respect of the asst. yr. 2001-02, proposing following question of law: Whether, under the facts and circumstances of the case and on interpretation of Section 80IB, whether Tribunal is justified in upholding the action of assessing authority by not allowing deduction under Section 80-IB on amount of DEPB and duty drawback being export incentives @ 25 per cent of Rs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Court in Sterling Foods (supra), which has been followed by this Court in Nahar Exports Ltd. v. CIT IT Ref. No. 642 of 2005 decided on 4th July, 2006 [reported at (2006) 204 CTR (P H) 464-Ed.], CIT v. Nahar Spinning Mills Ltd., ITC No. 201 of 1994, decided on 19 th April, 2006 and Liberty Shoes Ltd. v. CIT ITA No. 140 of 2005 decided on 17th Aug., 2006 [reported at (2007) 207 CTR (P H) 181-Ed.] no substantial question of law arises. It is submitted that the crucial issue was not whether the income of the assessee had the effect of reducing the cost of production, but whether the income was derived from the specified business as against income from any other source, irrespective of the question whether such source was inextricably connecte ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plication 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 undertaking 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. 8. We are of the view that for the reasoning adopted by the Hon'ble Supreme Court, income of the assessee from duty drawback cannot be held to be income derived from specified business. 9. Distinction sought ..... X X X X Extracts X X X X X X X X Extracts X X X X
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