2012 (2) TMI 101 - SC - Income Tax

Whether entire amount received on sale of the Duty Entitlement Pass Book (DEPB) represents profit on transfer of DEPB – Held that:- Not the entire amount but the sale value less the face value of the DEPB will represent profit on transfer of DEPB. See Topman Exports vs CIT(2012 - TMI - 210467 - SUPREME COURT OF INDIA) – Decided in favor of assessee.

Computation of deduction u/s 80HHC - 90% exclusion of net interest/rent or gross interest/rent – Held that:- Ninety per cent of not the gross interest/rent but only the net interest/rent, which has been included in the profits of the business of the assessee as computed under the heads ‘PGBP’ is to be deducted under clause (1) of Explanation (baa) to Section 80HHC for determining the profits of the business. Matter remanded back to A.O. to work out the deductions – Decided in favor of assessee