Liberty India v. Commissioner of Income Tax

9 SCC 328Reported decision2009#4735 most cited

What is Liberty India v. Commissioner of Income Tax authority for?

DEPB/Duty Drawback schemes are considered export incentives and are distinct from reimbursements of costs. Entitlement to DEPB arises only after manufacturing and exporting a product, and is not directly related to the business of manufacturing or selling.

25

judgments rely on this decision, according to BharatTax’s citation analysis of 366,339 Indian tax judgments — from 2012 to 2025.

Also referred to as

Liberty India v. CIT · export incentive · DEPB · Duty Drawback · reimbursement of cost · manufacturing · export · business of industrial undertaking

Also reported as

317 ITR 281

Issues it is cited on

section 75section 10bainterest on outstanding receivablesinitial assessment yeartransfer pricing ordersection 80hsection 80hhcsection 10btested partysection 80hhsection 80ibarms length price

Judgments citing Liberty India v. Commissioner of Income Tax

National Cooperative Development Corporation vs. Assistant Commissioner of Income Tax

C.A. No.-004612-004612 - 2014Supreme Court10 Dec 2025

Bench: HON'BLE MR. JUSTICE PAMIDIGHANTAM SRI NARASIMHA

Section 36(1)(viii)

…d business activity. It is judicially settled that "derived from" is narrower than "attributable to", this distinction was lucidly clarified by this Court in Cambay Electric Supply 1 (2016) 6 SCC 747. 2 (1999) 4 SCC 98. 3 (2003) 5 SCC 590. 4 (2009) 9 SCC 328. 11 Industrial Co. Ltd. v. CIT5, where it was held that the legislature uses "derived from" when it intends to give a restricted meaning. The relevant part of the judgment is extracted hereunder: "8. As regards the aspect emerging from the expression "attributable to" occurring in the phrase "profits and gains attributable to the business…

Assistant Commissioner of Income Tax-27 vs. Montage Enterprises Pvt. Ltd

Appeal is disposed of, in the aforesaid terms

ITA-734/2019HC Delhi27 Sept 2023

Bench: This Court. 4. First, The Sustainability Of The Deletion Of Addition Made Under Section 68 Of The Income Tax Act, 1961 [In Short, “Act”] With Regard To The Digitally Signed By:Prem Mohan Choudhary Signing Date:31.10.2023 12:58:51 Signature Not Verified

Section 68Section 80I

…pondent/assessee, it was not a profit which was derived from the industrial undertaking. 8.3 In support of his plea, Mr Singh sought to place reliance on the judgment of the Supreme Court rendered in Liberty India vs. Commissioner of Income Tax (2009) 9 SCC 328. 9. Mr M.P. Rastogi, who appears on behalf of the respondent/assessee, submitted that no interference was called for with the impugned order passed by the Tribunal. In this behalf, Mr Rastogi sought to place reliance on the findings returned by the Tribunal. 10. We have heard the counsel for the parties and perused the record. As regards…

Aqatic Frozen Foods Global Pvt Ltd, Visakhapatanam vs. ACIT, Circle1(1), Visakhapatanam

In the result, appeal of the assessee is dismissed

ITA 100/VIZ/2022[2017-2018]Status: DisposedITAT Visakhapatnam27 Sept 2023AY 2017-2018

Bench: Shri Duvvuru Rl Reddy, Hon’Ble & Shri S Balakrishnan, Hon’Ble

For Appellant: Sri GVN Hari, ARFor Respondent: Dr. Satya Sai Rath, CIT-DR
Section 142(1)Section 143(3)Section 263Section 80I

…ter it manufactures or produces the same. In paragraph 20, in the case of Meghalaya Steels Limited (supra), while distinguishing the profit derived from DEPB / Duty Drawback, it is observed and held as under:- “20. Liberty India [Liberty India v. CIT, (2009) 9 SCC 328] being the fourth judgment in this line also does not help the Revenue. What this Court was concerned with was an export incentive, which is very far removed from reimbursement of an element of cost. A DEPB drawback scheme is not related to the business of an industrial undertaking for manufacturing or selling its products. DEPB entitlement arises…

M/s Durga Granites vs. The Assistant Commissioner of Income Tax, Circle - 1

ITTA/30/2023HC Telangana04 Sept 2023

Bench: P.SAM KOSHY,LAXMI NARAYANA ALISHETTY

…nt subsequently accepted the principles laid down by the Full Bench of the High Court of Madhya Pradesh, those appeals were dismissed vide the judgement rendered in the case of Mandsaur Transport Association vs. State of M.P. and Others reported in (2001) 9 SCC 328. 15. It is further submitted that the Hon’ble Supreme Court in the case of State of Uttar Pradesh & Ors. Vs. Devi Dayal Singh reported in (2000) 3 SCC 5 has held that levy of toll is compensatory in nature which must bear a reasonable relationship of providing benefit and cannot otherwise be used for augmenting the State's revenue. 16. It…

Brodaways Overseas Limited, Jalandhar vs. Deputy Commissioner of Income Tax, Circle-1, Jalandhar

ITA 123/ASR/2018[2013-14]Status: DisposedITAT Amritsar30 May 2023AY 2013-14

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 10BSection 14A

…fter it manufactures or produces the same. In paragraph 20, in the case of Meghalaya Steels Limited (supra), while distinguishing the profit derived from DEPB / Duty Drawback, it is observed and held as under:- “20. Liberty India [Liberty India v. C/T, (2009) 9 SCC 328] being the fourth judgment in this line also does not help the Revenue. What this Court was concerned with was an export incentive, which is very far removed from reimbursement of an element of cost. A DEPB drawback scheme is not related to the business of an industrial undertaking for manufacturing or selling its products. DEPB entitlement arises…

The Asstt. Commissioner of Income Tax, Jalandhar vs. M/S Broadway Overseas Ltd., Jalandhar

ITA 49/ASR/2016[2011-12]Status: DisposedITAT Amritsar30 May 2023AY 2011-12

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 10BSection 14A

…fter it manufactures or produces the same. In paragraph 20, in the case of Meghalaya Steels Limited (supra), while distinguishing the profit derived from DEPB / Duty Drawback, it is observed and held as under:- “20. Liberty India [Liberty India v. C/T, (2009) 9 SCC 328] being the fourth judgment in this line also does not help the Revenue. What this Court was concerned with was an export incentive, which is very far removed from reimbursement of an element of cost. A DEPB drawback scheme is not related to the business of an industrial undertaking for manufacturing or selling its products. DEPB entitlement arises…

The Asstt. Commissioner of Income Tax, Jalandhar vs. M/S Broadway Overseas Ltd., Jalandhar

ITA 48/ASR/2016[2010-11]Status: DisposedITAT Amritsar30 May 2023AY 2010-11

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 10BSection 14A

…fter it manufactures or produces the same. In paragraph 20, in the case of Meghalaya Steels Limited (supra), while distinguishing the profit derived from DEPB / Duty Drawback, it is observed and held as under:- “20. Liberty India [Liberty India v. C/T, (2009) 9 SCC 328] being the fourth judgment in this line also does not help the Revenue. What this Court was concerned with was an export incentive, which is very far removed from reimbursement of an element of cost. A DEPB drawback scheme is not related to the business of an industrial undertaking for manufacturing or selling its products. DEPB entitlement arises…

The Asstt. Commissioner of Income Tax, Jalandhar vs. M/S Broadway Overseas Ltd., Jalandhar

ITA 47/ASR/2016[2009-10]Status: DisposedITAT Amritsar30 May 2023AY 2009-10

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 10BSection 14A

…fter it manufactures or produces the same. In paragraph 20, in the case of Meghalaya Steels Limited (supra), while distinguishing the profit derived from DEPB / Duty Drawback, it is observed and held as under:- “20. Liberty India [Liberty India v. C/T, (2009) 9 SCC 328] being the fourth judgment in this line also does not help the Revenue. What this Court was concerned with was an export incentive, which is very far removed from reimbursement of an element of cost. A DEPB drawback scheme is not related to the business of an industrial undertaking for manufacturing or selling its products. DEPB entitlement arises…

The Asstt. Commissioner of Income Tax, Jalandhar vs. M/S Broadway Overseas Ltd., Jalandhar

ITA 46/ASR/2016[2007-08]Status: DisposedITAT Amritsar30 May 2023AY 2007-08

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 10BSection 14A

…fter it manufactures or produces the same. In paragraph 20, in the case of Meghalaya Steels Limited (supra), while distinguishing the profit derived from DEPB / Duty Drawback, it is observed and held as under:- “20. Liberty India [Liberty India v. C/T, (2009) 9 SCC 328] being the fourth judgment in this line also does not help the Revenue. What this Court was concerned with was an export incentive, which is very far removed from reimbursement of an element of cost. A DEPB drawback scheme is not related to the business of an industrial undertaking for manufacturing or selling its products. DEPB entitlement arises…

The Asstt. Commissioner of Income Tax, Jalandhar vs. M/S Broadways Overseas Ltd, Jalandhar

ITA 345/ASR/2016[2012-13]Status: DisposedITAT Amritsar30 May 2023AY 2012-13

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 10BSection 14A

…fter it manufactures or produces the same. In paragraph 20, in the case of Meghalaya Steels Limited (supra), while distinguishing the profit derived from DEPB / Duty Drawback, it is observed and held as under:- “20. Liberty India [Liberty India v. C/T, (2009) 9 SCC 328] being the fourth judgment in this line also does not help the Revenue. What this Court was concerned with was an export incentive, which is very far removed from reimbursement of an element of cost. A DEPB drawback scheme is not related to the business of an industrial undertaking for manufacturing or selling its products. DEPB entitlement arises…

The Assistant Commissioner of Income Tax, Jalandhar vs. M/S Broadways Overseas Ltd, Jalandhar

ITA 477/ASR/2015[2008-09]Status: DisposedITAT Amritsar30 May 2023AY 2008-09

Bench: Dr. M. L. Meena & Sh. Anikesh Banerjee

Section 10BSection 14A

…fter it manufactures or produces the same. In paragraph 20, in the case of Meghalaya Steels Limited (supra), while distinguishing the profit derived from DEPB / Duty Drawback, it is observed and held as under:- “20. Liberty India [Liberty India v. C/T, (2009) 9 SCC 328] being the fourth judgment in this line also does not help the Revenue. What this Court was concerned with was an export incentive, which is very far removed from reimbursement of an element of cost. A DEPB drawback scheme is not related to the business of an industrial undertaking for manufacturing or selling its products. DEPB entitlement arises…

M/S. Saraf Exports vs. Commissioner of Income Tax, Jaipur - III

C.A. No.-004822-004822 - 2022Supreme Court10 Apr 2023

Bench: HON'BLE MR. JUSTICE M.R. SHAH

Section 143(2)Section 75Section 80

…(Appeals). However, the Income Tax Appellate Tribunal (ITAT) allowed the appeal preferred by the assessee vide order dated 17.12.2013 by inter alia observing that the decision of this Court in the case of Liberty India Vs. Commissioner of Income Tax, (2009) 9 SCC 328 : (2009) 317 ITR 218 (SC) can be said to be per incuriam and allowed the deductions as claimed on the receipts of amount under DEPB Scheme and Duty Drawback Scheme. 2.4 By the impugned judgment and order and relying upon the decision of this Court in the case of Liberty India (supra) and the decision of this Court in the case of Commissioner of…

Pr. Commissioner of Income Tax Bengaluru-5, Bengaluru vs. M/S Ntt Data Global Delivery Services Ltd

Accordingly, the same is dismissed

ITA/392/2022HC Delhi12 Oct 2022

Bench: HON'BLE MR. JUSTICE MANMOHAN,HON'BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA

Section 10Section 10ASection 10BSection 80ASection 80I

…ITA No.392/2022 Page 1 of 4 $~27 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 392/2022 PR. COMMISSIONER OF INCOME TAX BENGALURU-5, BENGALURU ..... Appellant Through: Mr.Zoheb Hossain, Sr.Standing Counsel for the Revenue with Mr.Vipul Agrawal and Mr.Parth Semwal, Advocates. versus M/S NTT DATA GLOBAL DELIVERY SERVICES LTD. ..... Respondent Through: None Date of Decision: 12th October, 2022 CORAM: HON’BLE MR. JUSTICE MANMOHAN HON’BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA J U D G M E N T MANMOHAN, J: C.M.No.43994/2022 Keeping in view the averments in the application, the delay in re- filing the appeal is condone…

Pr. Commissioner of Income Tax Bengaluru-5, Bengaluru vs. M/S Ntt Data Global Delivery Services Ltd

Accordingly, the same is dismissed

ITA - 392 / 2022HC Delhi12 Oct 2022

Bench: The Supreme Court & The Said Issue Is Pending Adjudication In Civil Appeal No.9175 Of 2018. 4. Having Heard Learned Counsel For The Appellant, This Court Finds That The Issue Raised In The Present Appeal Is No Longer Res Integra. In Principal Commissioner Of Income Tax-1 Vs. American Express India Pvt. Ltd.

Section 10Section 10ASection 10BSection 80ASection 80I

…ITA No.392/2022 Page 1 of 4 $~27 * IN THE HIGH COURT OF DELHI AT NEW DELHI + ITA 392/2022 PR. COMMISSIONER OF INCOME TAX BENGALURU-5, BENGALURU ..... Appellant Through: Mr.Zoheb Hossain, Sr.Standing Counsel for the Revenue with Mr.Vipul Agrawal and Mr.Parth Semwal, Advocates. versus M/S NTT DATA GLOBAL DELIVERY SERVICES LTD. ..... Respondent Through: None Date of Decision: 12th October, 2022 CORAM: HON’BLE MR. JUSTICE MANMOHAN HON’BLE MS. JUSTICE MANMEET PRITAM SINGH ARORA J U D G M E N T MANMOHAN, J: C.M.No.43994/2022 Keeping in view the averments in the application, the delay in re- filing the appeal is condone…

Principal Commissioner of Income Tax, Central-2, Kolkata vs. M/S. Barak Valley Cements Ltd

ITAT/145/2018HC Calcutta06 Jul 2022

Bench: HON'BLE JUSTICE T. S. SIVAGNANAM,HON'BLE JUSTICE BIVAS PATTANAYAK

Section 260ASection 80I

…Commissioner of Income Tax Vs. Meghalaya Steels Ltd., reported in (2016) 6 SCC 747. The learned counsel appearing for the appellant/revenue placed strong reliance upon the decision of the Hon’ble Supreme Court in Liberty India Vs. CIT, reported in (2009)9 SCC 328 and submitted that the remission of VAT is not directly relatable to the business of an industrial undertaking for manufacturing or selling its product and, therefore, the assessee is not entailed to claim deduction under Section 80IC of the Act. The decision in Liberty India was considered by the Hon’ble Supreme Court in Meghalaya Steels and the r…

Assistant Commissioner of Income Tax, Circle 1(1), Huballi vs. Hubli Electricity Supply Co. Ltd., Hubballi

In the result, appeal of the Revenue is treated as allowed for statistical purposes

ITA 570/BANG/2017[2012 - 13]Status: DisposedITAT Bangalore30 Jun 2021

Bench: Shri N. V. Vasudevan & Shri B. R. Baskaranassessment Year :2012-13 The Assistant Commissioner Of Vs. Hubli Electricity Supply Co. Ltd., Income Tax, Navanagar, Circle – 1(1), Hubballi – 580 025. Hubballi. Pan : Aabch3176 J Appellant Respondent Revenue By : Ms. Neera Malhotra, Cit(Dr)(Itat), Bengaluru Assessee By : Smt. Prathibha, Advocate Date Of Hearing : 24.06.2021 Date Of Pronouncement : 30.06.2021 O R D E R Per N. V. Vasudevan

For Appellant: Smt. Prathibha, AdvocateFor Respondent: Ms. Neera Malhotra, CIT(DR)(ITAT), Bengaluru
Section 80ISection 8O

…red the decision rendered by the Hon’ble Supreme Court in the case of Liberty India (supra) in the following words: “16. The sheet anchor of Shri Rodhakrishnan's submissions is the judgment of this Court in Liberty India v. Commissioner of Income Tax, (2009) 9 SCC 328. This was a case referring directly to Section Page 5 of 9 80-IB in which the question was whether DEPB credit or Duty drawback receipt could be said to be in respect of profits and gains derived from an eligible business. This Court first made the distinction between "attributable to" and "derived from" stating that the latter expression is narro…

Ramnath and Co vs. The Commissioner of Income Tax

C.A. No.-002506-002509 - 2020Supreme Court05 Jun 2020

Bench: HON'BLE MR. JUSTICE DINESH MAHESHWARI

Section 80

…ied liberally. In this regard, we may observe that deductions, exemptions, rebates et cetera are the different species of incentives extended by the Act of 196115. In other words, incentive is a 15 As tersely put by this Court in Liberty India v. CIT: (2009) 9 SCC 328, the Act of 1961 broadly provides for two types of tax incentives, namely, investment-linked incentives and profit-linked incentives. Chapter VI-A which provides for incentives in the form of tax deductions essentially 64 generic term and ‘deduction’ is one of its species; ‘exemption’ is another. Furthermore, Section 80-O is only one of the provi…

Prilicipal Commissioner of Income Tax - 1 vs. M/S American Express India Pvt. Ltd

ITA/749/2016HC Delhi20 Feb 2018

Bench: HON'BLE MR. JUSTICE S. RAVINDRA BHAT,HON'BLE MR. JUSTICE A. K. CHAWLA

Section 10ASection 10BSection 80ASection 80I

…tion 10A was the subject of the judgment of this Court in Riviera Home Furnishing v. ACIT 2016 (65) taxmann.com 287 (Del). 3. The Court then had the occasion to consider the prevalent ruling of the Supreme Court on this issue in Liberty India v. CIT 2009 317 ITR 281. 4. This Court – in Riviera (supra) held as follows: “15. In the considered view of the Court, the submissions made on behalf of the Revenue proceed on the basic misconception regarding the true purport of the provisions of Chapter VIA of the Act and on an incorrect understanding of Section 80A (4) of the Act. The opening words of Section…

ITO, New Delhi vs. Mrs. Ambika Sadh, New Delhi

In the result, both the appeals of the revenue are dismissed

ITA 6252/DEL/2015[2010-11]Status: DisposedITAT Delhi28 Aug 2017AY 2010-11

Bench: Shri G.D. Agrawal & Shri Amit Shuklain Ita Nos. 6252 & 6253/Del/2015 Assessment Years: 2010-11 & 2011-12 Ito, Ward -29(4), Vs. Ambika Sadh Room No. 1013, 10Th Floor, Prop. M/S. Euro Expo. E-2 Block, Dr. S.P. Sukherjee C-57, M.B. Road, Civic Centre, Jln Marg, Lal Kuan Badarpur, Minto Road, New Delhi New Delhi (Applicant) (Respondent) (Pan: Aoqps4050C)

For Appellant: NoneFor Respondent: Shri Atiq Ahmed, Sr. DR
Section 10BSection 143(3)Section 80I

…as under:- “We have heard the learned counsels for the parties. 2. The issue, namely, the entitlement of export incentives to deduction under Section 80-IB of the Income Tax Act, 1961 has been squarely decided by this Court in Liberty India vs. C.I.T. (2009) 9 SCC 328. Commissioner of Income Tax vs. Meghalaya Steels Limited (2016) 6 SCC 747 does not in any way erode the efficacy of law laid down in Liberty India (supra) as Meghalaya Page 6 of 11 Steels Limited (supra) was primarily a case where the Court was dealing with transport subsidy, which is a reimbursement of the cost incurred by the manufacturing unit…

ACIT, New Delhi vs. M/S Vineet Sood & Sons (HUF), New Delhi

In the result, the appeal of the revenue is dismissed

ITA 6205/DEL/2015[2007-08]Status: DisposedITAT Delhi25 Aug 2017AY 2007-08

Bench: Shri G.D. Agrawal & Shri Amit Shuklain Ita No. 6205/Del/2015 Assessment Year: 2007-08 Acit Vs. Vineet Sood & Sons (Huf), Circle 28(1), G-53, Sarita Vihar, New New Delhi Delhi (Applicant) (Respondent) (Pan: Aaahv3031Q)

For Appellant: Shri Rakesh Verma, CAFor Respondent: Shri Atiq Ahmed, Sr. DR
Section 10BSection 143(1)Section 143(3)Section 147Section 263

…as under:- “We have heard the learned counsels for the parties. 2. The issue, namely, the entitlement of export incentives to deduction under Section 80-IB of the Income Tax Act, 1961 has been squarely decided by this Court in Liberty India vs. C.I.T. (2009) 9 SCC 328. Commissioner of Income Tax vs. Meghalaya Steels Limited (2016) 6 SCC 747 does not in any way erode the efficacy of law laid down in Liberty India (supra) as Meghalaya Steels Limited (supra) was primarily a case where the Court was dealing with transport subsidy, which is a reimbursement of the cost incurred by the manufacturing unit in the North-E…

Liberty India v. Commissioner of Income Tax (9 SCC 328) — Cited in 25 Judgments | BharatTax