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2011 (4) TMI 858 - HC - Income TaxSale of DEPB - whether total sale consideration inclusive of face value of DEPB and premium amount received thereof represents profit chargeable under sections 28? - Held that:- As decided in CIT v. Kalpataru Colours & Chemicals (2010 (6) TMI 63 - BOMBAY HIGH COURT) when Section 28(iiid) specifically deals with profits realized on the transfer of the DEPB credit, it would be impermissible as a matter of first principle to bifurcate the face value of the DEPB and the amount received in excess of the face value of the DEPB - face value is not required to be deducted from the sale proceeds - the entire amount of sale proceeds is taxable under section 28(iiid) - It is not permissible to bifurcate the proceeds of the DEPB into “face value” for section 80 HHC r.w.s. 28(iiid) - matter was remanded to the Tribunal for fresh decision in accordance with law.
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