2008 (8) TMI 339

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..... by this court, we do not find any wound to admit the appeal on the first ground, viz., entitlement of the appellant to deduction under section 80-I in respect of duty drawback – benefit denied.
K. RAVIRAJAPANDIAN and P. P. S. JANARTHANARAJA JJ. R. Venkatanarayanan for the appellant. JUDGMENT The judgment of the court was delivered by K. RAVIRAJA PANDIAN J.— These appeals are at the instance of the of the assessee against the order of the Income -tax Appellate Tribunal, Madras "C" Bench, dated January 18, 2008, passed in I. T. A. Nos. 990 and 991/Mds/2007 respectively. 2. The relevant assessment years are 2002-03 and 2003-04. The facts in both the appeals are one and the same in respect of both the assessment years, except the figure .....

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..... ?" 3. We heard the argument of learned counsel appearing for the appellant. 4. In respect of the assessee's own case pertaining to the assessment year 2001-02, this court in Sakthi Footwear v. CIT (No. 1) (T. C. (A) No. 1252 of 2007) dated November 7, 2007- [2009] 317 ITR 194 (Mad), to which one of us (K. Raviraja Pandian J.) was a party, held thus (pages 196 and 197 of 317 ITR) : "4. As far as the first question is concerned, viz., the deduction under section 80-I in respect of duty drawback, learned counsel for the appellant placed reliance on the Gujarat High Court decision reported in CIT v. India Gelatine and Chemicals Ltd. [2005] 275 ITR 284, wherein it was held that duty drawback was 'derived from' the industrial undertaking and, .....

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..... Excise [1997] 106 STC 467 ; AIR 1997 SC 690, the Division Bench held that the Supreme Court held the word 'derived' is usually followed by the word 'from', and it means : get or trace from a source; arise from, originate in; show the origin or formation of. The Division Bench also followed the decision of this court reported in CIT v. Pandian Chemicals Ltd. [1998] 233 ITR 497. 7. In the said decision, this court held that profits or gains eligible for deduction under section 80HH must be derived from the actual conduct of the business. This court further held that the mandate of law is that unless the source of the profit is the undertaking, the assessee is not eligible to claim deduction under section 80HH; that mere commercial connectio .....

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