- (1.) The aforesaid appeals by the Revenue arise from a common judgment of the Income Tax Appellate Tribunal, Lucknow Bench dated 27 August 2013 in a batch of four appeals. The assessment years are 2003-04, 2004-05, 2005-06 and 2006-07. The Revenue has raised the following questions of law :- 1. Whether on the facts and circumstances of the case and in law the Hon'ble ITAT was justified in setting aside the issue and remitting to the CIT (A) for adjudication de novo without appreciating the fact that the case is squarely covered by the decision of Hon'ble Supreme Court in the case of Liberty India Vs. CIT, 2009 317 ITR 218 ? 2. Whether on the facts and circumstances of the case and in law the Hon'ble ITAT was justified in not following a binding precedent that was squarely applicable to the case before it ?
(2.) The issue before the Tribunal was whether or not the Commissioner (Appeals) was justified in declining a deduction under Section 80 IB of the Income Tax Act 1961 in respect of a duty drawback. The assessee had claimed a deduction under Section 80 IB of the total profit from business including the duty drawback. The Assessing Officer held that the duty drawback would not qualify for a deduction under Section 80 IB since this was not a profit derived from the industrial undertaking. The CIT (A) confirmed the disallowance.
(3.) Sri Shambhu Chopra, learned counsel appearing on behalf of the appellant submitted that the judgment of the Tribunal is clearly in defiance of the law as laid down by the Supreme Court in Liberty India Vs. Commissioner of Income Tax, 2009 317 ITR 218.;