Duty Drawback Taxable Only on Receipt – ITAT Deletes Addition & U/s 270A Penalty

SKF Engineering & Lubrication India Pvt. Ltd. Vs DCIT (ITAT Bangalore) The ITAT Bangalore held that duty drawback is taxable only on actual receipt basis, and not merely on accrual or portal data, thereby deleting both the addition and penalty. The AO made an addition based on CBEC/ICEGATE portal data, alleging higher duty drawback income than recorded in books. The assessee had consistently recognized duty drawback only upon actual receipt in bank, in line with Section 145B(3). The Tribunal observed: As per law, duty drawback becomes income in the year of receipt Assessee’s bank statem...