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[2007] 293 ITR 520 [2007] 158 Taxman 462 (Punjab & Haryana) HIGH COURT OF PUNJAB AND HARYANA Liberty India v. Commissioner of Income-tax, Karnal* RAJESH BINDAL AND ADARSH KUMAR GOEL, JJ. IT APPEAL NO. 590 OF 2005 SEPTEMBER 22, 2006 Section 80-IB of the Income-tax Act, 1961 - Deductions - Profits and gains from industrial undertakings, other than infrastructure development undertakings - Assessment year 2001-02 - Whether assessee cannot claim deduction under section 80-IB in respect of duty drawback received, as same cannot be said to be income derived from specified business - Held, yes CASE REVIEW CIT v. Sterling Foods [1999] 237 ITR 579 (SC) followed & relied upon. CASES REFERRED TO CIT v. Sterling Foods [1999] 237 ITR 579/ 104 Taxman 204 (SC) [Para 2], CIT v. Ritesh Industries Ltd. [2005] 274 ITR 324/ 142 Taxman 551 (Delhi) [Para 3], CIT v. India Gelatine & Chemicals Ltd.[2005] 275 ITR 284/ 145 Taxman 303 (Guj.) [Para 4], Nahar Exports Ltd. v. CIT [2006] 156 Taxman 305 (Punj. & Har.) [Para 5], CIT v. Nahar Spg. Mills Ltd. [IT Case No. 201 of 1994, dated 19-4-2006] [Para 5] and Liberty Shoes Ltd. v. CIT [IT Appeal No. 140 of 2005, dated 17-8-2006] [Para 5]. P.C. Jain for the Appellant. Yogesh Putney for the Respondent. ORDER 1. This appeal has been preferred under section 260A of the Income-tax Act, 1961 (for short, 'the Act') against the order passed by Income-tax Appellate Tribunal, Delhi in ITA No. 5433/Del./2004, dated 28-6-2005 in respect of the assessment year 2001-02, proposing following question of law :- "Whether under the facts and circumstances of the case and on interpretation of section 80-IB, whether Tribunal is justified in upholding the action of assessing authority by not allowing deduction under section 80-IB on amount of DEPB and duty drawback being export incentives at the rate of 25 per cent of Rs. 22,70,056 being Rs. 5,67,514?" 2. The assessee claimed deduction under section 80-IB in respect of duty drawback amounting to Rs. 1,74,316 which was disallowed by the Assessing Officer on the ground that the said income was not "derived from" the business of the assessee as per requirement of section 80-IB, as held by the…

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