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TMI Blog2011 (1) TMI 203X X X X Extracts X X X X X X X X Extracts X X X X ..... the assessee whether the export incentives earned by the appellant under the DEPB Scheme was allowable as deduction under Section 80IA of the Act - the remission of duty is on account of the statutory/policy provisions in the Customs Act/Schemes(s) framed by the Government of India - profits derived by way of such incentives do not fall within the expression "profits derived from industrial undertaking" in s.80-IB. - Appeal is dismissed - 1130 of 2010 - - - Dated:- 11-1-2011 - MR. JUSTICE F.M. IBRAHIM KALIFULLA, MR.JUSTICE N.KIRUBAKARAN, JJ. For Appellant : Mr.M.P.Senthil Kumar For Respondent : Mr.T.Ravikumar Judgment F.M.IBRAHIM KALIFULLA, J. The assessee is aggrieved by the order of the Tribunal date ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... f the depreciation to 50% of the amount permissible under Section 32(1)(iia) of the Act. According to the appellant, when it satisfied all the conditions stipulated under the provisos to Section 32(1)(iia) of the Act, the Assessing Authority ought not to have restricted the depreciation permissible under the said section by resorting to the second proviso to Section 32(1) of the Act. The learned counsel however fairly pointed out before us that in the second proviso to Section 32(1) of the Act, that very Clause (iia) itself was inserted by Finance Act 2002 with effect from 01.04.2003. Therefore, it was imperative that on and after 01.04.2003, the claim of the appellant made under Section 32(1)(iia) of the Act, had to be necessarily assessed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... linked to profits and not to investment. On analysis of Ss. 80IA and 80-IB, it becomes clear that any industrial undertaking, which becomes eligible on satisfying sub-s. (2), would be entitled to deduction under sub-s. (1) only to the extent of profits derived from such industrial undertaking after specified date(s). Hence, apart from eligibility, sub-s. (1) purports to restrict the quantum of deduction to a specified percentage of profits. This is the importance of the words "derived from industrial undertaking" as against "profits attributable to industrial undertaking". 16. ... 17. ... 18. Analysing the concept of remission of duty drawback and DEPB, we are satisfied that the remission of duty is on account of the statutory/ ..... X X X X Extracts X X X X X X X X Extracts X X X X
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