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DEPB and Duty Drawback are not eligible for deduction u/s 80-IB
Case Law Details
- Case Name
- M/s Liberty India Vs Commissioner of Income Tax (Supreme Court of India)
- Appeal Number
- Only available for paid members
- Date of Judgement/Order
- Only available for paid members
- Courts
- Supreme Court of India
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...
