2004 (6) TMI 581

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....ssessee is a private limited company engaged in trading of garments. For the assessment year 1996-97, the assessee has exported garments through its sister concern M/s. JB Exports and on such exports the assessee has received duty drawback from the Government of India under the Central Excise Duty Drawback Rules. The contention of the assessee before the Assessing Officer was that the goods exported were provided by M/s. JB Exports and duty draw-back received by the assessee has been passed on to the said concern and the same has been shown by M/s. JB Exports as its income. It appears that in the books of account no entry has been made by the assessee with regard to export of garments as well as the receipt of duty drawback from the Governm....

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....ociated company for making exports against export quota of the assessee. The learned counsel further added that since the goods exports were provided by M/s. JB Exports Ltd., sale proceeds were directly credited to the bank account of M/s. JB Exports Ltd. and duty drawback, which was received by the assessee was also passed on to its sister concern. The learned counsel in the written submissions argued that the duty drawback is merely an expenditure recouped and cannot be treated as income. In support of his contention, he placed reliance on the decision of the Tribunal in the case of Dy. CIT v. Metro Tyres Ltd. [2001] 79 ITD 557 (Delhi). 6. After careful consideration of the rival submissions and going through the impugned order of the ....