DEPB and Duty Drawback are not eligible for deduction u/s 80-IB

SUMMARY OF CASE LAW The assessee claimed that profit from Duty Entitlement Passbook Scheme (DEPB) and Duty Drawback Scheme are “derived from the business of the Industrial Undertaking” and consequently eligible for deduction u/s 80-IB. On appeal by the assessee, HELD, rejecting the plea: (1) The Act broadly provides for two types of tax incentives, namely, investment linked incentives and profit linked incentives. Ch VI-A essentially belongs to the category of “profit linked incentives”; (2) When ss. 80-IA/80-IB refer to profits derived from eligible business, it is not the ownership o...