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TMI Blog2017 (10) TMI 1215X X X X Extracts X X X X X X X X Extracts X X X X ..... of income that can be availed only if income does not fall under any of the other four heads of income. Section 28(iii)(b) specifically states that income from cash assistance, by whatever name called, received or receivable by any person against exports under any scheme of the Government of India, will be income chargeable to income tax under the head “profits and gains of business or profession”. If cash assistance received or receivable against exports schemes are included as being income under the head “profits and gains of business or profession”, it is obvious that subsidies which go to reimbursement of cost in the production of goods of a particular business would also have to be included under the head “profits and gains of busines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t got vitiated on account of apparent inconsistency of reversing the order of Ld. CIT(A) and simultaneously setting aside the ground of appeal to the Ld. Assessing Officer? 3. While considering the matter the Tribunal observed as under:- 12. We have heard rival contentions and perused the material on record. The Hon ble Supreme Court in the case of Liberty India (supra) has considered the issue of DEPB and duty draw back and with reference to section 80IA/80IB held that DEPB/duty draw back benefit would not form part of the net profit. The section 80IA and 80IB deduction is provided by the Statute for industrial undertaking and profit gains derived from any business of an industrial undertaking a certain percentage deduction be ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the subsection (8) and sub-section (1) of section 80IA also applicable in relation to the und ertaking referred to in this section as they apply for the purpose of undertaking referred to in section 80IA. Section 10BA was inserted by the Finance Act, 2003 with effect from 1.4.2004 whereas section 80IA was inserted by the Finance Act,1999 with effect from 1.4.2000. Originally section 80IA was inserted by the Finance Act, 1991 with effect from 1.4.1991. The languages of both the sections are same but the effective dates are different. Therefore, findings of Hon ble Supreme Court in the case of Liberty India squarely are applicable in case of deduction claimed by the assessee under section 10BA and credited duty draw back and DEPB in the Profi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... TO (supra)and recalculate the income accordingly. Therefore, this ground of appeal is setaside to the ld Assessing Officer. 4. However, the view taken by the Supreme Court in the case of Commissioner of Income-Tax V/s Meghalaya Steels Ltd. [2016] 383 ITR 217 (SC) wherein it has been held as under:- 20. Liberty India being the fourth judgment in this line also does not help Revenue. What this Court was concerned with was an export incentive, which is very far removed from reimbursement of an element of cost. A DEPB drawback scheme is not related to the business of an industrial undertaking for manufacturing or selling its products. DEPB entitlement arises only when the undertaking goes on to export the said product, that is after i ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tance, by whatever name called, received or receivable by any person against exports under any scheme of the Government of India, will be income chargeable to income tax under the head profits and gains of business or profession . If cash assistance received or receivable against exports schemes are included as being income under the head profits and gains of business or profession , it is obvious that subsidies which go to reimbursement of cost in the production of goods of a particular business would also have to be included under the head profits and gains of business or profession , and not under the head income from other sources . 29. For the reasons given by us, we are of the view that the Gauhati, Calcutta and Delhi High C ..... X X X X Extracts X X X X X X X X Extracts X X X X
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