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TMI Blog2015 (7) TMI 783X X X X Extracts X X X X X X X X Extracts X X X X ..... nsideration shall be treated as amount derived from the business and the assessee would be entitled for deduction on such interest on its total income. Decided in favour of the assessee. As far as deduction granted with regard to the income received by the assessee so far as sale received from DEPB is concerned, the Hon'ble Supreme Court in the case of Liberty India V/s. Commissioner of Income-Tax (2009 (8) TMI 63 - SUPREME COURT) has categorically held that such income cannot be treated as income from business activities and, therefore, no deduction can be granted under the provisions of 80-IB. Decided against assessee. - TAX APPEAL NO. 858 of 2010 - - - Dated:- 15-7-2015 - MR. A.J.DESAI AND MR. A.G.URAIZEE, JJ. FOR THE APPELL ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of sale of Duty Entitled Pass Book Scheme (hereinafter referred to as DEPB ) . The assessee challenged the said order before Commissioner of Income Tax (Appeals). By judgement and order dated 29/08/2006, the appeal preferred by the assessee was partly allowed and it was held that the petitioner was entitled for the deductions provided under section 80-IB of the Act for DEPB. The said decision was challenged by revenue before the Income Tax Appellate Tribunal, A-Bench, Ahmedabad, which came to be dismissed by the Tribunal vide order dated 15/05/2009. Hence, the present appeal. 4. At the time of hearing, following substantial question was raised as substantial question of law: Whether the Appellate Tribunal is right in law and on fact ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts derived by way of incentives such as DEPB cannot be credited against the cost of manufacture of goods debited in the profit and loss account and they do not fall within the expression profits derived from industrial undertaking under section 80-IB. Therefore, he would submit that the Tribunal has wrongly allowed income of DEPB under the provisions of section 80-IB. He, therefore, would submit that the appeal may be allowed for the aforesaid question. 6. On the other hand, Mr.Saurabh Soparkar, learned counsel appearing for the respondent would submit that the assessee would not be entitled for any set off for the income by way of sale of DEPB, in view of the judgement delivered by Hon'ble Supreme Court in the case of Liberty Ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ibunal with regard to the income received by the assessee so far as sale received from DEPB is concerned, the Hon'ble Supreme Court in the case of Liberty India V/s. Commissioner of Income-Tax (supra) has categorically held that such income cannot be treated as income from business activities and, therefore, no deduction can be granted under the provisions of 80-IB. Hon ble Apex Court in para-22 has been specifically stated as stated hereinabove, which reads as under: 22. The cost of purchase includes duties and taxes (other than those subsequently recoverable by the enterprise from the taxing authorities), freight inwards and other expenditure directly attributable to the acquisition. Hence, trade discounts, rebate, duty drawback ..... X X X X Extracts X X X X X X X X Extracts X X X X
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