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2012 (5) TMI 77 - HC - Income TaxDEPB credit utilized by the assessee and profit earned on sale of DEPB credit would constitute profits under Section 28 (iiid) – Held that:- In M/s Topman Exports Versus Commissioner of Income Tax, Mumbai (2012 -TMI - 210467 - SUPREME COURT OF INDIA) it has been held by the Supreme Court that DEPB credit which is utilized is covered under Section 28 (iiic) and profits of sale of DEPB are covered by Section 28 (iiid) - The Tribunal was wrong in holding that the DEPB credit was covered by Section 28 (iiid) of the Act.- in favour of assessee. Interest income to be excluded while applying Explanation (baa) to Section 80 HHC – Held that:- Since the assessee has stated that they had earned interest income on FDRs from bank for availing various facilities availing like margin money, packing credit, etc , the Tribunal has not examined the factual matrix and has merely affirmed the decision of the CIT(Appeals)that interest received is assessable under the head “other sources” - remit to the Tribunal to factually examine the aforesaid aspect - in favour of assessee. Applied Explanation (1)(iv) to Section 115JB while computing the book profits – Held that:- As per Explanation (1)(iv) to Section 115JB, it is clear that the book profit shall be reduced by the amount of profits eligible for deduction under section 80HHC as computed under clause (a) or clause (b) or clause (c) of sub-section (3) or sub-section (3A) - AO had added several expenses like dis-allowances of amounts under Section 14A, feasibility report expenses, the deduction as computed by the assessee is not on record - remit to the Tribunal to re-compute the deduction under Explanation (1)(iv) of Section 115JB – in favour of assessee.
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