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2012 (7) TMI 459 - ITAT, DELHIDis allowance of Deduction u/s 80HHC - assessee contested for not allowing appropriate amount of deduction by holding that the entire amount received on the sale of DEPB represents profits chargeable to tax under section 28 (iiid)- Held that:- DEPB is a kind of assistance given by the Government of India to an exporter to pay customs duty on its imports and it is receivable once exports are made and an application is made by the exporter for DEPB, therefore, no doubt that DEPB is “cash assistance” receivable by a person against exports under the scheme of the GOI and falls under clause (iiib) of Section 28 and is chargeable to income tax under the head “Profits and Gains of Business or Profession” even before it is transferred by the assessee - while the face value of the DEPB will fall under clause (iiib) of Section 28 the difference between the sale value and the face value of the DEPB will fall under clause (iiid) of Section 28 and it was not right in taking the view that the entire sale proceeds of the DEPB realized on transfer of the DEPB and not just the difference between the sale value and the face value of the DEPB represent profit on transfer of the DEPB - in favour of assessee.
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