Mona Dewan v. Income-tax Appellate Tribunal & Ors
[Citation -2017-LL-0424-82]
| Citation | 2017-LL-0424-82 |
|---|---|
| Appellant Name | Mona Dewan |
| Respondent Name | Income-tax Appellate Tribunal & Ors |
| Court | HIGH COURT OF RAJASTHAN |
| Relevant Act | Income-tax |
| Date of Order | 24/04/2017 |
| Judgment | View Judgment |
| Keyword Tags | duty drawback receipts • competent authority • gross total income • accrual of income • business activity • admissibility of deduction • eligible business • eligible industrial undertaking |
| Bot Summary: | Counsel for the appellant has framed the following questions of law:- a) Whether the use of word any before profit and gains in Section 80IB of the Income Tax construe that any profit or gain which is linked with business activity and included in the gross total income make the assessee eligible for deduction under Section 80IB. b) Whether the Duty Drawback amount falls under the category of profit and gain and not excludes itself on the ground of being incentive c) Whether the plurality of the words profits and gains make it clear that whatever gain and profit arising out of business has to be considered for granting the deduction under Section 80IB d) Whether the words used derived from the ITA-110/2016 business include the incentive of Duty Drawback amount 3. In view of the observations made by the Tribunal in para 2.3, 2.4 2.5 which reads as under:- 2.3 As far as the subsequent decision of the Hon ble Supreme Court in case of M/s Topman Exports which the Ld AR has heavily relied upon, the ld. CIT(A) has rightly held that the said decision was on difference issues and facts and hence not applicable in the instant case as can be seen from the substantial questions of law raised before the Supreme Court reproduced as under: Whether the Tribunal is justified in holding that the entire amount received on the sale of the Duty Entitlement Passbook does not represent profits chargeable under section 28(iiid) of the I.T. Act, 1961 and that the face value of the Duty Entitlement Passbook shall be deducted from the sale proceeds. Whether the Tribunal is justified in holding that the face value of the Duty Entitlement Passbook is chargeable to tax under section 28(iiid) at the time of accrual of income i.e. when the application for Duty Entitlement Passbook is filed with the competent authority pursuant to the exports made and that the profits on the sale of Duty Entitlement Passbook representing the excess of the sale proceeds over the face value is liable to be considered under section 28(iiid) at the time of sale. 2.4 Regarding the decision of Hon ble Rajasthan High Court in case of Saraf Seasoning Udhyog, it is noted that the said decision relates to receipts on account of sale of DEPB licences and in view of specific amendment to section 28(iiid), where such receipts have been brought to tax as business receipts, whether the same will qualify for deduction under section 80IB of the Act. Secondly, the said decision was rendered following the decision of Hon ble Supreme Court in case of B. Desraj 310 ITR 439 without noticing the distinction between the relief u/s 80HHC and relief under section 80IB of the Act. Counsel in ITA-110/2016 view of the settled legal position as held by the Hon ble Supreme Court in case of Liberty India. |