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2013 (6) TMI 132 - HC - Income TaxCalculation of profits from transfer of DEPB licenses - what treatment the DEPB credits should be given for the purpose of computing assessee’s claim of deduction u/s 80IA and 80IB - whether Tribunal erred in not applying the ratio of judgment of Topman Exports vs. CIT [2012 (2) TMI 100 - SUPREME COURT OF INDIA] & relying on Liberty India [ 2009 (8) TMI 63 - SUPREME COURT] - whether Tribunal erred by not holding that the ratio of decision in case of Liberty India [supra] and Topman Exports (supra) not consistent with each other and can coexist and in-fact supplement each other? - Held that:- Tribunal did not commit any error. The question which the assessee raises in the present Tax Appeal was precisely before the Apex Court in the case of Liberty India (supra) wherein context of the deduction u/s 80IA and 80IB held that the benefits of DEPB (as also duty drawback, rebate, etc.) would constitute independent source of income beyond the first degree nexus between the profits and the industrial undertaking. Thus this decision leaves no scope for any doubt or debate. In contrast, the decision in the case of Topman Exports (supra) was rendered in the background of deduction u/s 80HHC. The question was to what extent the receipts of sale of DEPB scrips should be ignored for the purpose of computing such deduction. It was in this background the Supreme Court held not the entire sale proceeds but the profit margin, which would be a part of the sale proceeds, should be ignored while computing the deduction. Both the judgments, therefore, operate in different fields. The Tribunal correctly applied the ratio laid down in Liberty India (supra) since the facts in the present appeal are identical. - Decided against the assessee.
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