TaxTMI 
TaxTMI 
2014 (6) TMI 981
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....hallenging the order of the CIT(Appeals)XVIII, Mumbai dated 25th February 2009 for the Assessment Year 2006-07, three grounds were raised viz. First ground pertains to the exchange rate difference and that is eligible for deduction under section 801B of the Income Tax Act 1961. 3. It is conceded before us that in so far as this claim or deduction is concerned, the Tribunal following the judgment of this Court in the case of Commissioner of Income Tax v/s Rachana Udyog, reported in 1 Taxmann.com 29 (Bom) allowed the said deduction. 4. The only claim remains is for DEPB and duty drawback. In that regard, our attention is invited by the Assessee's counsel to page 93 of the paper-book to submit that in the Assessment Year, the Assessi....
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....t in the case of Liberty India (supra) has been later on not followed inasmuch while dismissing the Special Leave Petition directed against the judgment of the Delhi High Court in the case of CIT v/s Dharam Pal Prem Chand Ltd., reported in (2009) 180 Taxman 557 (Delhi), the Supreme Court has upheld the view of the Delhi high Court. Then, reliance is placed on the subsequent judgment of the Gauhati High Court in the case of Commissioner of Income Tax v/s Meghalaya Steels Ltd., in Income Tax Appeal No.6 of 2010, decided on 16th September 2010 wherein the Division Bench of the Gauhati High Court distinguished the judgment in Liberty India (supra). For all these reasons, it is submitted that the present Appeal should also be entertained and for....
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....This neutralization is provided for by credit to customs duty against export product. Under DEPB, an exporter may apply for credit as percentage of FOB value of exports, made in freely convertible currency. Credit is available only against the export product and at rates specified by DGFT for import of raw materials, components etc. DEPB for import of raw materials, components etc. DEPB credit under the Scheme has to be calculated by taking into account the deemed import content of the export product as per basic customs duty and special additional duty payable on such deemed imports. Therefore, in our view, DEPB/duty drawback are incentives which flow from the Schemes framed by Central Government or from s. 75 of the Customs Act 1962, henc....
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.... are not in agreement that the ITAT has erred in not considering both the aspects viz. the duty drawback as also the claim which was made towards DEPB. If DEPB was covered by Liberty India's judgment, then failure to consider duty drawback claim is unsustainable, is the plea. We are unable to agree with the same. In the paragraph reproduced above, the Supreme Court has considered both the claims and held as above. Therefore, ratio of that judgment is clearly applicable to the facts and circumstances of the present case. The Tribunal did not commit any error in holding that if the claim was of Daman Unit of the Assessee, then the matter was squarely covered against the Assessee and in favour of the Revenue by Liberty India' judgment.....
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....es. In that regard, the judgment of the Delhi High Court distinguishing the ratio or not applying the ratio in Liberty's case cannot be said to be applicable before us. There the excise duty refund resulted in augmentation of the income. In any event, the judgment in the case of Liberty India Ltd. is rendered by the Hon'ble Supreme Court after the judgment of the Delhi High Court. Considering the nature of the claim before the Delhi High Court dismissal of the Special Leave Petition filed by the Revenue against it carries the matter of the Assessee before us no further. 15. Equally, the judgment in the case of Commissioner of Income Tax v/s Meghalaya Steels Ltd., there was a return of income filed and in relation to three items w....