Dismissing the appeal of the aassessee the Court held that in order to settle the dispute whether receipts by way of incentives from the Government in the nature of cash assistance, duty drawback, profits on transfer of duty entitlement passbook schemes, were capital or revenue receipts and would thus, be taxable, the Legislature inserted clauses (iiia), (iiib), (iiic), (iiid) and (iiie) in section\u00a028\u00a0of the\u00a0Income-tax Act, 1961\u00a0making these incentives taxable under the head of \u201cProfits and gains of business and profession\u201d. Section\u00a080-IB\u00a0provides for deduction in respect of profits and gains from certain industrial undertakings. For claiming deduction under section\u00a080-IB, it must be on the \u201cprofits and gains derived from industrial undertakings\u201d mentioned in section 80-IB. Profits from duty entitlement passbook schemes and duty drawback claims cannot be said to be income \u201cderived from\u201d the industrial undertaking and even otherwise under section 28(iiid) and (iiie), such income is chargeable to tax. The assessee is not entitled to deduction under section\u00a080-IB\u00a0on the amount of duty entitlement passbook scheme as well as duty drawback schemes. Any contrary decision of any High Court is held to be not good law. Followed CIT v. Sterling Foods (1999) 237 ITR 159 (SC), Liberty India v. CIT (2009) 317 ITR 218 (SC), Explained, CIT v. Meghalaya Steels Ltd. (2016) 383 ITR 217 (SC)\u00a0\u00a0 (AY. 2008-09)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 80IB : Industrial undertakings – derived from – Profits from Duty Entitlement Passbook Scheme and Duty Drawback claims- Not income \u201cDerived From\u201d Industrial Undertaking-Not eligible for deduction. [28(iiib), 28(iiic), Art, 136] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-37404","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-9Ji","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/37404","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=37404"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/37404\/revisions"}],"predecessor-version":[{"id":37405,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/37404\/revisions\/37405"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=37404"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=37404"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=37404"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}