LI Network
Published on: 12 April 2023 at 11:42 IST
Upholding High Court ruling Supreme Court said, Section 80-IB deduction not available on profit earned from DEPB/Duty Drawback Schemes
No deduction is admissible u/s 80-IB on the profit earned from DEPB/Duty Drawback Schemes
Supreme Court in its order said, Duty Entitlement Pass Book (DEPB) / Duty Drawback Scheme is not related to the business of an industrial undertaking for manufacturing or selling its products and the DEPB entitlement arises only when the undertaking goes on to export the said product, that is, after it manufactures or produces the same.
In view of the above, the High Court has rightly held that the respondent – assessee is not entitled to the deductions under Section 80-IB on the amount of DEPB as well as Duty Drawback Schemes.
We hold that on the profit earned from DEPB / Duty Drawback Schemes, the assessee is not entitled to deduction under Section 80-IB of the Act, 1961. Any contrary decision of any High Court is held to be not good law.