TaxTMI 
TaxTMI 
2025 (11) TMI 1771
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....in turn arises out of an order passed by the Assessing Officer dated 24/03/2021, u/s 143(3) read with section 143(3A) & 143(3B) of the Income Tax Act, 1961. 2. Grounds of appeal raised by the assessee are as follows: 1. The Ld. AO erred in law and on facts in making an addition of Rs. 4,97,182/- being the duty draw back, pertaining to AY 2018-19 offer to tax in the subsequent year when the same was receipts and the facts and circumstances of the case it is contended that the regular method of accounting adopted for reconciling income from duty draw back when the same was actually received ought not to be disturb more particularly, when the assessee has been following the same since the numbers of year, and the actual receipts of....
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....uty Drawback (ii). ICDS compliance and adjustment. The notice u/s. 143(2) of the Income Tax Act, 1961 had been issued on 22/09/2019 through ITBA to the assessee's registered e-mail id. Subsequently for assessment proceedings, notice u/s 142(1) of the Act, along with questionnaire issued on 19/11/2020 and 22/12/2020 through ITBA and served to the assessee' s registered e-mail id. In compliance to above notice, the assessee has furnished reply and documents on 28/12/2020 online. The information/ documents furnished have been examined by the assessing officer. As for the facts narrated by the lower authorities, the substantive ground of appeal is against the addition of duty drawback income for assessment year (AY) 2018-19 to the exten....
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....fically declaring the duty drawback amount. The ld.Counsel pointed out that the benefit received during the assessment year under consideration, on such exports of such products, that is, Duty Drawback income of Rs. 10,73,593/- was recognized on cash basis as per doctrine of prudence and general trade practice and upon which there is no Revenue loss to the department. The assessee is following such accounting policy of recognizing duty drawback on receipt basis since inception, therefore, addition sustained by the learned CIT(A) may be deleted. 8. On the other hand, the Ld. DR for the Revenue has primarily reiterated the stand taken by the Assessing Officer, which we have already noted in our earlier para and is not being repeated for th....
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....s entitlement to duty drawback arises under the Customs, Central Excise Duties and Service Tax Drawback (Amendment) Rules, 2006. The assessee has adopted a sound and consistent accounting policy of recognizing duty drawback on cash receipt basis in accordance with the doctrine of prudence and general trade practice. The assessee submitted before the lower authorities, the supporting documents, including the ledger of duty drawback received during the year and sample shipping bills, to establish that the total duty drawback benefit received during the year was Rs. 10,73,593/-. Hence, I find that there is no loss to the revenue in adopting the cash basis for recognizing duty drawback receipts, as the assessee has been following such method, s....