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2018 (5) TMI 1782 - HC - Income TaxExemption under section 10BA to a trading and export firm which was not involved in manufacturing or production of eligible artistic articles - Held that:- The issue involved in this case is squarely covered by the decision of this Court in the case of “Ranjana Johari Vs. Assistant Commissioner of Income Tax, Circle-6, Jaipur” [2015 (10) TMI 2557 - ITAT JAIPUR] as held as per sub-section (6) of section 10BA, the sub-section (8) and sub-section (1) of section 80IA also applicable in relation to the undertaking referred to in this section as they apply for the purpose of undertaking referred to in section 80IA. Section 10BA was inserted by the Finance Act, 2003 with effect from 1.4.2004 whereas section 80IA was inserted by the Finance Act, 1999 with effect from 1.4.2000. Originally section 80IA was inserted by the Finance Act, 1991 with effect from 1.4.1991. The languages of both the sections are same but the effective dates are different. Therefore, findings of Hon’ble Supreme Court in the case of Liberty India [2009 (8) TMI 63 - SUPREME COURT]squarely are applicable in case of deduction claimed by the assessee under section 10BA and credited duty draw back and DEPB in the Profit & Loss Account, but is not derived income from undertaking. Therefore, we reverse the order of ld. CIT (A) to that extent. Entire sale proceeds not to be treated as profits but only difference between sale value and face value of credit – DEPB credit chargeable as income under section 28(iiib) in year in which applied for against exports. Further, profit on transfer of credit chargeable under section 28(iiid) in year in which transferred. In view of above, the matter is hereby remitted to the Assessing Officer and it will open for both the parties to raise their contentions before the Assessing Officer.
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