NARAYAN INDUSTRIES vs ACIT CIRCLE 60(1) NEW DELHI

Judgment text excerpt

$~16 * IN THE HIGH COURT OF DELHI AT NEW DELHI % Date of Decision : 12.02.2026 + ITA 489/2022 NARAYAN INDUSTRIES .....Appellant Through: Mr. Rohit Jain, Mr. Aniket D. Agrawal and Mr. Abhisek Singhvi, Advs. versus ACIT CIRCLE 60(1) NEW DELHI .....Respondent Through: Mr. Ruchir Bhatia SSC with Mr. Anant Mann JSC. CORAM: HON'BLE MR. JUSTICE DINESH MEHTA HON'BLE MR. JUSTICE VINOD KUMAR JUDGMENT DINESH MEHTA, J. (ORAL) 1. The following questions of law were framed on 30.09.2024 in the present appeal: (i) Whether on the facts and in the circumstances of the case, the Tribunal erred in law in upholding the action of the assessing officer in denying deduction to the extent of Rs.1,52,07,079/- under Section 80-IC of the Act on account of duty drawback of the said amount, holding that the same is not derived from industrial undertaking? (ii) Whether the Tribunal erred in law in upholding the action of the assessing officer in denying deduction of Rs.6,58,683 under Section 80-IC of the Act on account of Signature Not Verified Signed By:PRAMOD KUMAR VATS ITA 489/2022 Page 1 of 6 Signing Date:13.02.2026 18:03:49 exclusion of gross interest on KDR from the eligible profits, holding that the same is not derived from industrial undertaking? 2. At the beginning of the submission, Mr. Rohit Jain, learned counsel for the appellant submitted that that he does not press the appeal qua question no.(ii). 3. The appeal is, therefore, dismissed qua question no.(ii). 4. In relation to the question no. (i) reproduced hereinabove also Mr. Rohit Jain, learned counsel for the appellant has fairly conceded that the first question stands decided by Hon’ble the Supreme Court against the assessee in the case of Liberty India v. Commissioner of Income-tax reported in [2009] 317 ITR 218 (SC) and Commissio