TaxTMI 
TaxTMI 
2017 (8) TMI 359
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....business of export of handicraft items. It had filed its return of income declaring taxable income of Rs. 1,78,879/-. The Assessing Officer noticed that assessee had shown net profit of Rs. 80,36,343/- and claimed exemption u/s 10B to the extent of Rs. 78,51,415/-. He noted that assessee firm had received duty draw back amounting to Rs. 19,93,742/-, which was credited in the Profit & Loss Account. Relying on the decision of Hon'ble Supreme Court in the case of Liberty India, 183 Taxman 349 (SC), wherein, duty draw back was not considered as eligible profit for computing deduction u/s 80I and 80IB of the Act, disallowed the assessee's claim. The assessee, in its reply, relied on the decision of Hon'ble Delhi High Court in the case of PAL Ent....
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....ld. CIT(A) has acted against the principles of judicial propriety by ignoring the decisions of Delhi Benches of ITAT on the similar issues. 4. On the facts and circumstances of the case and in law the ld. CIT(A) has acted against the principles of judicial propriety and rule of consistency by taking contrary view from the decisions of Ld. CIT(A)'s in appellant own case both in immediately and succeeding assessment years on similar issue. 5. The above grounds are independent and without prejudice to each other. 6. Appellant craves for grant of permission to add, amend, modify, delete or withdraw any ground of appeal at or any time before the hearing of the appeal." 4. Ld. counsel submitted that this issue is....
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....Supra) have held that as per section 28, (clause (iiic) of the Act any duty of Custom and Excise repayable as drawback to a person against export under Custom and Central Excise Duty drawback Rules 1971 is deemed to be the profits and gains of business or profession. Their lordship further held that the said provision has to be given full effect to and this means that the duty drawback or duty benefits would be deemed to be a part of business income and this will be treated as profit derived from business of the undertaking and the same cannot be excluded. 19. In the present case, from operative part of the impugned order as reproduced hereinabove, we observe that before granting relief for the assessee the ld. CIT(A) has held that....
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.... of section 10B (I) r.w.s. 10B(4) of the Act. 20. On the basis of foregoing discussion, we reach to logical fortified conclusion that the AO misinterpreted the ratio or decision of Hon'ble Apex Court in the case of Liberty India (Supra) while denying claim of the assessee u/s 10B of the Act. 21. On the other hand we are inclined to hold that the ld. CIT(A) was right in following the decision of Special Bench of ITAT Indore in the case of Maral Overseas Ltd. (Supra) while granting relief for the assessee in the impugned order. We also respectfully note that the Hon'ble Jurisdictional High Court of Delhi in the recent decision dated 13.11.2013 in the case of CIT vs. Hritnik Export (P) Ltd., (Supra) have upheld the ratio ....