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2015 (10) TMI 2038 - AT - Income TaxSale value of DEPB - computation of deduction u/s 80HHC - whether only Profits on Sale of Licenses are to be treated as income of the Appellant? - Held that:- As decided in Topman Exports [2012 (2) TMI 100 - SUPREME COURT OF INDIA] DEPB has direct nexus with the cost of imports for manufacturing an export product, any amount realized by the assessees over and above the DEPB on transfer of the DEPB would represent profit on the transfer of DEPB and while the face value of the DEPB will fall under clause (iiib) of Section 28, difference between the sale value and the face value of the DEPB will fall under clause (iiid) of Section 28 – The AO is directed to recalculate the claim made by the assessee in light of the decision of the Hon’ble Apex Court. - Decided in favor of assessee. Disallowance of deduction of 10% of export incentive from the indirect cost at the time of calculation of deduction u/s. 80HHC - Held that:- We find that the assessee had made an appeal before the FAA and he had rejected the claim following the judgment of Goetz India (2006 (3) TMI 75 - SUPREME Court). In the case of Pruthvi Brokers and Share Holders (P) Ltd. (2012 (7) TMI 158 - BOMBAY HIGH COURT ), the Hon'ble Bombay High Court has clearly held that the appellate authorities can admit new claim made by an assessee even if same was not made before the AO, that in case of the AO the claim could be made by filing a revised return only.As the FAA did not have the benefit of the judgment of the Pruthvi Brokers(supra),so,in the interest of justice we are restoring back the matter to the file of the FAA to decide the issue afresh in light of the decision of Surendra Engg. Corpn. (2002 (12) TMI 199 - ITAT BOMBAY-H). He is directed to afford a reasonable opportunity of hearing to the assessee. Ground No.3 of the appeal is allowed in part. - Decided partly in favour of assessee.
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