आयकर अपीलीय अधिकरण, धिशाखापटणम पीठ, धिशाखापटणम IN THE INCOME TAX APPELLATE TRIBUNAL VISAKHAPATNAM “DIVISION” BENCH, VISAKHAPATNAM (HYBRID HEARING)

श्री रिीश सूद ,न्याधयक सदस्य एिं श्री एस बालाकृ ष्णन, लेखा सदस्य के समक्ष BEFORE SHRI RAVISH SOOD, HON’BLE JUDICIAL MEMBER &

SHRI S BALAKRISHNAN, HON’BLE ACCOUNTANT MEMBER आयकर अपीलसं./I.T.A.No.223/VIZ/2023 (निर्धारण वर्ा/ Assessment Year: 2019-20)

Nekkanti Sea Foods Limited Vs. Asst. CIT - Central Circle – 1 Flat No. 1, Jayaprada Apartments Pratyakshakar Bhavan Nowroji Road, Maharanipeta MVP Double Road Andhra Pradesh – 530002 Andhra Pradesh - 530020 [PAN:AAACN4664J]

(अपीलधर्थी/Appellant) (प्रत्यर्थी/Respondent)

करदाता का प्रतततितित्व/ Assessee Represented by : Shri Pawan Chakrapani, CA राजस्व का प्रतततितित्व/ Department Represented by : Dr.Satyasai Rath, CIT(DR)

सुिवाई समाप्त होिे की ततति/ Date of Conclusion of Hearing : 22.07.2025 घोर्णध की तधरीख/Date of Pronouncement : 25.07.2025 आदेश /O R D E R PER SHRI S BALAKRISHNAN, ACCOUNTANT MEMBER:

1. This appeal is filed by the assessee against order of Learned Commissioner of Income Tax (Appeals), Visakhapatnam – 3 [hereinafter in short “Ld.CIT(A)”] vide DIN & Order No. ITBA/APL/S/250/2023- 24/1054514486(1) dated 21.07.2023 for the A.Y.2019-20 arising out of the order passed under section 143(3)of Income Tax Act, 1961 (in short ‘Act’)

dated 14.06.2021.

2. The brief facts of the case are that the assessee is a limited company engaged in the business of export of frozen shrimp and other sea foods filed its return of income for the A.Y.2019-20 on 21.10.2019 declaring a total income of Rs.1,19,26,63,420/-. After processing the return of income U/s. 143(1), the case was selected for complete scrutiny under CASS and accordingly statutory notices U/s. 143(2) and 142(1) were issued to the assessee calling for the information. The assessee’s representative filed its reply on line through e-filing portal. The Ld. Assessing Officer [hereinafter in short “Ld. AO"] on examination of the information furnished by the assessee noticed that assessee claimed deduction under section 80IB(11A) of the Act amounting to Rs.64,96,87,896/- on the net profits derived from J. Thimmapuram Unit. The Ld.AO noticed that assessee has included other revenue in the form of duty draw back amounting to Rs. 10,59,37,013/- and sale of licenses amounting to Rs.28,16,55,312/- aggregating to Rs.38,75,92,325/-. Accordingly, the Ld.AO issued show-cause notice proposing to reduce the receipts on account of duty draw back and sale of licenses from the net profits of the undertaking. In response, assessee filed its submissions and requested to drop the proposal of addition of receipts. After considering the submissions of the assessee, Ld. AO by relying on the decision laid down by the Hon’ble Supreme court in the case of Liberty India v. CIT (SC) 317 ITR 218 disallowed Merchandise Exports from India Scheme (MEIS) of Rs.28,16,55,312/-and Duty Draw Back of Rs.10,59,37,013/- [total Rs.38,75,92,325/-] considering it as not eligible for deduction under section 80IB of the Act as claimed by the assessee and therefore made an addition of Rs.38,75,92,325/- to the total income of the assessee.

3. Aggrieved by the order of the Ld. AO, assessee preferred an appeal before the Ld. CIT(A) and filed its submissions. Ld. CIT(A) upheld the additions made by the Ld. AO, thereby dismissed the appeal filed by the assessee.

4. Aggrieved by the order of the Ld. CIT(A), assessee filed an appeal before us by raising following grounds of appeal: -

“1. The order of the learned Authorities below, in so far as it is against the Appellant is opposed to law, equity, weight of evidence, probabilities and the facts and circumstances in the Appellant's case.

2. The Appellant denies himself liable to be assessed over and above the total income of Rs 119,26,63,420/-, returned by the Appellant, under the facts and circumstances of the case.

3. Whether the learned Authorities below are justified in disallowing the claim of the A