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TMI Blog2016 (8) TMI 96X X X X Extracts X X X X X X X X Extracts X X X X ..... he profits of business for computing the deduction u/s.80HHC. - Decided in favour of the assessee and against the Revenue. Deduction under Section 80IB - duty free import benefit inclusion - Held that:- The issue is settled by the judgment of Apex Court in the case of Liberty India v. Commissioner of Income-tax, [2009 (8) TMI 63 - SUPREME COURT ] wherein, it has been held that duty drawback receipts / Duty Entitlement Pass Book benefits are on account of statutory provisions in Customs Act / Schemes framed by the Government and therefore, profits so derived do not form part of net profits of eligible industrial undertaking for purposes of Sections 80IB, 80I and 80IA. Learned counsel Mr. Dave could not point out any distinguishing feature ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l sheet as raw material. The scrap of raw material, which was not capable of being used, was sold as scrap because it could not be recycled in the same form of sheets of stainless steel, as the assessee was not having a rerolling plant. On these facts, the Apex Court held that proceeds generated from sale of scrap could not be included in “total turnover” for the purpose of computation for deduction u/s.80HHC. - Decided in favour of the assessee and against the Revenue. Deduction under Section 80HHC - net interest received from customer - Held that:- As in the case of ACG Associated Capsules (P) Ltd. v. Commissioner of Income-tax, Central-IV, Mumbai, [2012 (2) TMI 101 - SUPREME COURT OF INDIA ] wherein, it has been held that Explanation ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... here the tax effect does not exceed the monetary limit of ₹ 20.00 Lacs. It is also decided that the said Circular shall apply retrospectively in pending appeals as well. Hence, both the issues are answered in favour of the assessee and against the Revenue. - TAX APPEAL NO. 983 of 2009 - - - Dated:- 8-7-2016 - MR. KS JHAVERI AND MR. G.R.UDHWANI, JJ. FOR THE APPELLANT : MRS MAUNA M BHATT, ADVOCATE FOR THE OPPONENT : MR. JAIMIN R DAVE, ADVOCATE ORAL JUDGMENT (PER : HONOURABLE MR.JUSTICE KS JHAVERI) 1. This Tax Appeal u/s.260A of the Income-tax Act, 1961 is filed against the order dated 12.09.2008 passed by the Income-tax Appellate Tribunal, Ahmedabad in ITA No.3984/Ahd/2003 raising the following substantial q ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stated to be derived from industrial undertaking and therefore, eligible for deduction under Sections 80HHC and 80IB of the Income Tax Act, 1961? (G) Whether the Income Tax Appellate Tribunal is right in law and on facts in directing to allow deduction under Sections 80HHC and 80IB of the Income Tax Act, 1961 on ₹ 26,000/being subsidy on energy audit? 2. The facts in brief are as under; The assesseecompany is engaged in the business of manufacture of decorative and industrial laminates. The assessee filed its return of income on 27.11.2000 declaring total income of Rs.NIL and income u/s.115JA of ₹ 43,73,631/along with the return of income. The A.O. passed the assessment order u/s.143(3) of the Act on 27.03.2003 and he ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... (SC) wherein, it has been held that duty drawback receipts / Duty Entitlement Pass Book benefits are on account of statutory provisions in Customs Act / Schemes framed by the Government and therefore, profits so derived do not form part of net profits of eligible industrial undertaking for purposes of Sections 80IB, 80I and 80IA. Learned counsel Mr. Dave could not point out any distinguishing feature, which may warrant a different view. In view of the same, the Question No.(B) is answered in favour of the Revenue and against the assessee. 7. The issue raised in the form of Question No. (C) is also settled by the judgment of Apex Court in the case of Commissioner of Income-tax, Coimbatore v. Lakshmi Machine Works, [2007] 160 Taxman 404 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ld that proceeds generated from sale of scrap could not be included in total turnover for the purpose of computation for deduction u/s.80HHC. In view of the above, the Question No.(D) is answered in favour of the assessee and against the Revenue. 9. The issue raised in the form of Question No. (E) is also settled by the judgment of Apex Court in the case of ACG Associated Capsules (P) Ltd. v. Commissioner of Income-tax, Central-IV, Mumbai, [2012] 18 taxmann.com 137 (SC) wherein, it has been held that Explanation (baa) to section 80HHC states that profits of the business means the profits of the business as computed under the head Profits and Gains of Business or Profession as reduced by the receipts of the nature mentioned in cla ..... X X X X Extracts X X X X X X X X Extracts X X X X
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