TaxTMI 
TaxTMI 
2015 (7) TMI 783
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....ed to be dealt with separately. 2. The present tax appeal under section 260 A of the Income-Tax Act,1961, has been filed by the revenue challenging the judgement and order dated 15/05/2009 passed by Income Tax Appellate Tribunal, A-Bench, Ahmedabad in ITA No.2339/Ahd/2006, by which, the appeal preferred by the revenue challenging the order of Commissioner of Income Tax (Appeals)-VIII, Ahmedabad, has been partly allowed. 3. Brief facts, arise from the record of the case, are as under: That the respondent is an industrial undertaking registered under the provisions of Companies Act,1956 and is in business of manufacturing aluminium wire rods, etc. The petitioner filed return of its income for the assessment year 2002-03, as per the provis....
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....s.Mona Bhatt, learned advocate appearing for the petitioner has fairly submitted that the appeal is required to be partly allowed in view of the ratio laid down by Hon'ble Apex Court. He would submit that though the disputed question is bifurcated in four parts, the appeal is required to be allowed as far as 4th part of the question i.e. with regard to income received by the assessee by sale of DEPB to the tune of Rs. 10,53,381/-. Mr.M.R.Bhatt, learned senior counsel appearing for the petitioner has relied upon the decision rendered in the case of Liberty India V/s. Commissioner of Income-tax - (2009)3 ITR 218 (SC) and submitted that it has been held that Hon'ble Apex Court that DEPB are incentives, which flow from the schemes framed by Ce....
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....ioner of Income-Tax V/s. Nirma Ltd. - [2014]367 ITR 12 (GUJ), has submitted that there is no need to interfere with the judgement of Tribunal as well as CIT (Appeals) in view of the law laid down by Division Bench of this Court. 7. We have heard learned advocates appearing for the respective parties. We have perused the decisions rendered by Division Bench in the case of Nirma Industries Ltd. V/s. Deputy Commissioner of Income-Tax (supra) as well as Commissioner of Income-Tax V/s. Nirma Ltd. (supra) wherein it has been held that interest received on delayed payment of sale consideration shall be treated as amount derived from the business and the assessee would be entitled for deduction on such interest on its total income. Therefore, lear....
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....ia (ICAI) has issued guidance note on accounting treatment for Cenvat/Modvat under which the inputs consumed and the inventory of inputs should be valued on the basis of purchase cost net of specified duty on inputs (i.e. duty recoverable from the Department at a later stage) arising on account of rebates, duty drawback, DEPB benefit, etc. Profit generation could be on account of cost cutting, cost rationalization, business restructuring, tax planning on sundry balances being written back, liquidation of current assets, etc. Therefore, we are of the view that duty drawback, DEPB benefits, rebates, etc. cannot be credited against the cost of manufacture of goods debited in the profit and loss account for purposes of section 80IA/ 80IB as suc....