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2013 (12) TMI 541 - HC - Income TaxWhether receipts of DEPB are eligible for deduction u/s 80HHC - Held that:- Following Topman Exports Vs. Commissioner of Income Tax [2012 (2) TMI 100 - SUPREME COURT OF INDIA] - Receipts on Duty Entitlement Passbook Scheme (DEPB) would form part of the profits and gains of the business, it being the assistance given by the Government of India to an exporter to pay customs duty on its imports - The "cash assistance" received under the DEPB scheme would fall under Clause (iiib) of Section 28 - This is chargeable to income-tax under the head "Profits and gains of business or profession" - The Explanation (baa) under Section 80HHC of the Act giving the formula for working out the deduction - "profits of the business" means the profits of the business as computed under the head "Profits and gains of business or profession" as reduced by ninety per cent., of any sum referred to in clause (iiia), (iiib), (iiic), (iiid) and (iiie) of Section 28 - 90% of the DEPB which is "cash assistance" against exports and is covered under clause (iiib) of Section 28 will get excluded from the "profits of the business" of the assessee, if such DEPB has accrued to the assessee during the previous year - Decided against Revenue.
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