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2010 (1) TMI 783 - AT - Income TaxDisallowance of the claim of the assessee u/s 80HHC for the DEPB entitlement received - assessee is having export turnover of Rs.10 crores and 90% of DEPB was reduced from profit of business for the purpose of computation of deduction allowable to the assessee under section 80 HHC of the Act but the same was not added back as per the amended provision of section 80HHC - Held that:- manner of computation of profit on sale of DEPB and as per the Special Bench, face value of DEPB is to be reduced from sale proceeds of DEPB and if the sale proceeds is higher than the face value, such excess is profit on sale of DEPB, order of the Ld CIT(A) on this issue set aside and restore this matter back to the file of the Assessing Officer for a fresh decision in the light of the decision of Special Bench of the Tribunal rendered in the case of Topman Exports Disallowance of the claim of the assessee u/s 80HHC on the Export sale - If the Assessing Officer finds that this RBI Master Circular is applicable in the present case and the export proceeds were realized as per this RBI Master circular, then such export proceeds should not be reduced from export turnover for the purpose of computation of deduction allowable to the assessee u/s 80HHC, matter remanded for fresh consideration. Netting the interest received and paid by the assessee - assessee has earned interest income - Assessing Officer has excluded the same from business profit and taxed the same under the head income from other sources - Held that:- issue should also go back to the file of the Assessing Officer for a fresh decision regarding this claim for netting of interest and hence we set aside the order of the Ld CIT(A) on this issue and restore this matter back to the file of the Assessing Officer for a fresh decision, matter remanded to AO.
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