2025 (10) TMI 778 - SCH - Income Tax

Duty-drawback accrues only on competent authority's order; excess raw-material consumption cannot reduce deduction under Section 80-IB for Section 80HHC

The SC held that duty-drawback income accrues to the assessee only upon passing of the competent authority's order, not in the year of export, and that ... Accrual of income - whether duty drawn back accrues to the assessee only on passing of the order by appropriate authority and not in the year of export? -Excess consumption of raw materials and components shown by the Assessee - Not to reduce the amount of deduction allowable u/s 80-IB from the profits of business for the purpose of computing deduction under Section 80HHC? HELD THAT:- Consequently, we dispose of this appeal also following the judgment passed by this Court in Maruti Suzuki India Limited through its Divisional Engineer) [2017 (12) TMI 1621 - DELHI HIGH COURT] Consequentially, we also hold that there was no reason for the High Court to interfere with the order of remand, which was passed for the purpose of limited factual verification by the Assessing Officer. Leave granted. The appeal was disposed by applying this Court's earlier decision in Civil Appeal No(s).11919 of 2018 and 11921 of 2018 (The Commissioner of Income Tax 6 ... versus Maruti Suzuki India Limited) (Common Judgment dated 27.03.2025), which arose in respect of the same assessee. Parties' submissions were recorded and the appeal was disposed 'following the judgment passed by this Court in Civil Appeal No(s).11919 of 2018 and 11921 of 2018 (...Maruti Suzuki...) (Common Judgment dated 27.03.2025).' The Court held that there was 'no reason for the High Court to interfere with the order of remand,' the remand having been made for the purpose of limited factual verification by the Assessing Officer. Consequential orders flowing from the precedent were applied, the appeal stands disposed in those terms, and pending applications, if any, are disposed of.