ITA No.521 of 2006 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. ITA No. 521 of 2006 Date of decision: 6.12.2010 Commissioner of Income Tax , Ludhiana I, Ludhiana -----Appellant Vs. Deepak Fastners Limited, Ludhiana ----Respondent CORAM:- HON'BLE MR JUSTICE ADARSH KUMAR GOEL HON’BLE MR. JUSTICE AJAY KUMAR MITTAL Present:- Mr. Rajesh Katoch, Advocate for the appellant. Mr. Animesh Sharma, Advocate for the respondent. Adarsh Kumar Goel,J. This appeal was admitted to consider following substantial question of law raised on behalf of the revenue arising out of order passed by the Income Tax Appellate Tribunal Chandigarh Bench ‘A’, Chandigarh in ITA No.636/Chandi/2005 dated 28.4.2006, for the assessment year 2002-03:- “Whether on the facts and law, the Hon’ble Income Tax Appellate Tribunal was correct in holding that the DEPB was an income derived from the Industrial undertaking, ignoring the fact that in whatever form the export incentive/benefit flowed to the respondent resulting in some extra profit, the source of DEPB was the particular scheme of the Government and not the business of industrial undertaking?” We have heard leaner counsel for the parties and perused the record. 1 ITA No.521 of 2006 Learned counsel for the assessee fairly states that the issue is covered against the assessee by judgment of the Hon’ble Supreme Court in Liberty India v. CIT, (2009) 317 ITR 218. Accordingly, the question is answered in favour of the revenue and against the assessee. The appeal is allowed. (Adarsh Kumar Goel) Judge December 6, 2010 (Ajay Kumar Mittal) ‘gs’ Judge 2