2023 (3) TMI 1612

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....he assessing officer in denying deduction under section 80-IC of the Income Tax Act, 1961 (the Act") on the consideration received on sale of Focus Scrip/License amounting to Rs. 1,22,09,846 holding that the same is not derived from industrial undertaking. 1.1 That the CIT(A) erred on facts and in law in not appreciating that the consideration received on sale of Focus Scrip/ License was towards reimbursement of cost of manufacture or sale of products/ goods forming part of profit and gains derived from the business of eligible undertaking and therefore, admissible for deduction under section 80IC of the Act. 2. That the CFT(A) erred on facts and in law in confirming the action of the assessing officer in denying deduction....

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....of exported on goods. It was submitted that since duty draw back received during the year under consideration was less than the amount of duty component embedded as part of purchase price of various materials used in manu facture of the exported goods, there was no profit element in the duty draw back received during the year under consideration. As a necessary corollary, no part of the profits of the appellant from the industrial undertaking included any profit from incentive by way of duty drawback and there fore, the amount of duty drawback received and credited to the Profit & Loss Account was not reduced/ excluded from the eligible profits while computing deduction under section 80-IC of the Act. It was submitted that the assessing off....

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....t the assessee has given only approximately figures & in some cases there is no duty has been paid by the assessee as part of purchase price. There fore the calculation given by the assessee is not correct." 6. The ld CIT(A) concurred with the order of the AO. 7. We have gone through the record and also the submission of the assessee containing 22 pages. It was submitted that the duty drawback amounting to Rs. 1,92,64,540/- is less than the amount of duty component paid and embedded as part of the purchases debited to the profit and loss account. It was submitted that the assessee purchases various raw-material and packing materials which are subjected to payment of duty in the course of manufacture/ imports and the amount of duty dra....