Raj Oversease vs Commissioner of Income Tax

The assessee has preferred this appeal u/s 260A of the Income Tax Act, 1961 (in short, ''the Act'') against the order of the Income Tax Appellate Tribunal, Delhi Bench ''C, New Delhi dated 19-1-2007, for the assessment year 2003-04, proposing following substantial questions of law:

Whether the Duty Drawback received by the appellant is derived from an industrial undertaking per the genesis of the word derived in its true sense and spirits?

Whether the Duty Drawback received is an amount derived eligible for claim as per Section 28(iiic) though the Customs and Central Excise Duties Drawback Rules, 1971 stands repealed?

Whether there can be an interpretation of the word derived distinct from as laid in Commissioner of Income Tax, Karnataka Vs. Sterling Foods, Mangalore, being a broader interpretation per the judgments of The State of West Bengal Vs. Anwar Ali Sarkar, and the judgment of Katikara Chintamani Dora and Others Vs. Guntreddi Annamanaidu and Others, 4. Whether the action of the executive is sustainable inv the denying the claim of the Duty Drawback which is having direct nexus and being germane to the business as per the judgment of Union of India v. Rajindra Dyeing & Printing Mills Limited 2005 (180) ELT 433 (SC), Collector of Customs, Calcutta Vs. Sun Industries, .

The assessee derives income from manufacture of export of carpets. During the course of assessment, for the assessment year 2003-04, the assessing officer excluded claim of Rs. 1,41,02,387 from business profits while working out deductions u/s 80-IB of the Act. The said amount was received by the assessee as duty drawback. It was held that the said amount could not be treated as profits derived from industrial undertaking. The Commissioner (Appeals) affirmed the view taken by the assessing officer relying, inter alia, on judgment of the Hon''ble Supreme Court in Commissioner of Income Tax, Karnataka Vs. Sterling Foods, Mangalore, .

The Tribunal also dismissed the appeal of the assessee relying upon judgment of the Hon''ble Supreme Court in Sterling Foods'' case (supra) and DB judgment of this court in Liberty India Vs. Commissioner of Income Tax, .

We have heard learned Counsel for the parties and perused the record.

Learned Counsel for the assessee submitted that Delhi High Court has taken a different view in The Commissioner of Income Tax Vs. Eltek SGS (P) Ltd., , though without referring to judgment of this Court. It was also submitted that SLP was pending against the judgment of this Court. The Gujarat High Court had also taken a different view in Commissioner of Income Tax Vs. India Gelatine and Chemicals Ltd., .

Since a DB this court has already decided the issue against the assessee on the basis of judgment of the Hon''ble Supreme Court in Sterling Foods case (supra), we are unable to hold that substantial questions of law sought to be raised arise for consideration.

The appeal is dismissed.