Description:
The judgment of the Punjab & Haryana High Court in Liberty India has been upheld by the Apex Court in Liberty India v. CIT (2009) 29 (I) ITCL 169 (SC) : (2009) 317 ITR 218 (SC) : JT 2009 (11) SC 571. The Apex Court after considering the legal provisions held that the duty drawbacks could not be deemed to be profits derived from business. It is apparent that the Apex Court held that it is only the profits generated i.e. operational which are entitled to the benefit under section 80-IA.
Source:
1. www.tpcc.in
2. The Tax Referencer .Volume121. Issue No.4, 26 Sept. 2011, Page No.48.
Our Comment:
Duty drawbacks, not the profits generated from business operations, U/s. 80-IA.
