TaxTMI 
TaxTMI 
2017 (10) TMI 1215
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....1.2017 framed the following questions of law:- "(i) Whether the income from the duty draw back and sale of export license does not qualify as profit derived by an undertaking from the export out of India of eligible articles or things for allowing deduction u/s 10BA of the Act? (ii) Whether the order of the Ld. Tribunal does not got vitiated on account of apparent inconsistency of reversing the order of Ld. CIT(A) and simultaneously setting aside the ground of appeal to the Ld. Assessing Officer?" 3. While considering the matter the Tribunal observed as under:- 12. We have heard rival contentions and perused the material on record. The Hon'ble Supreme Court in the case of Liberty India (supra) has considered the issue of DEPB and d....
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....of the eligible articles or things shall be the amount which bears to the profits of the business of the undertaking, the same proportion as the export turnover in respect of such articles or things bears to the total turnover of the business carried on by the undertaking. As per sub-section (6) of section 10BA, the subsection (8) and sub-section (1) of section 80IA also applicable in relation to the und ertaking referred to in this section as they apply for the purpose of undertaking referred to in section 80IA. Section 10BA was inserted by the Finance Act, 2003 with effect from 1.4.2004 whereas section 80IA was inserted by the Finance Act,1999 with effect from 1.4.2000. Originally section 80IA was inserted by the Finance Act, 1991 with....
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....onsidering the order of the Hon'ble Supreme Court in the case of Topman Exports (supra) and case laws referred by the assessee i.e. decision of ITAT Jodhpur Bench, Jodhpur in the case of Angira Art Exports and Suraj Exports India and others and ITAT Mumbai Bench decision in the case of Arts & Crafts Exports Vs. ITO (supra)and recalculate the income accordingly. Therefore, this ground of appeal is setaside to the ld Assessing Officer. 4. However, the view taken by the Supreme Court in the case of Commissioner of Income-Tax V/s Meghalaya Steels Ltd. [2016] 383 ITR 217 (SC) wherein it has been held as under:- "20. Liberty India being the fourth judgment in this line also does not help Revenue. What this Court was concerned with was an expo....
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....reimbursed on the incurring of costs relatable to a business, are under the head "income from other sources", which is a residuary head of income that can be availed only if income does not fall under any of the other four heads of income. Section 28(iii)(b) specifically states that income from cash assistance, by whatever name called, received or receivable by any person against exports under any scheme of the Government of India, will be income chargeable to income tax under the head "profits and gains of business or profession". If cash assistance received or receivable against exports schemes are included as being income under the head "profits and gains of business or profession", it is obvious that subsidies which go to reimbursement ....