Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2018 (10) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2018 (10) TMI 1908 - AT - Income TaxRectification of application u/s 154 - deduction u/s. 80HHC - whether CIT(A) erred in holding that the DEPB benefit in the case of appellant was 'face value of DEPB' or 'profit on transfer of DEPB' was a debatable issue - HELD THAT:- The decision of Hon‟ble Supreme Court in the case ACIT v. Saurashtra Kutch Stock Exchange Ltd. [2008 (9) TMI 11 - SUPREME COURT] as well as circular of the department vide circular no. 68 dated 17.11.1971 binds the Revenue and supports the contention of the assessee that the assessee will be entitled for deduction u/s. 80HHC with respect to the face value of DEPB as contemplated by Hon‟ble Supreme Court in the case of Topman Export [2012 (2) TMI 100 - SUPREME COURT] as face value of DEPB is covered u/s 28(iiib) of the 1961 Act as “cash assistance‟ and the assessee shall be entitled for deduction u/s 80HHC read with first proviso to Section 80HHC(3). The assessee will be entitled for deduction u/s 80HHC on profits on sale of DEPB which is covered u/s 28(iiid) of the 1961 Act provided conditions as stipulated in third proviso to Section 80HHC(3) are met as it is admitted by the assessee that its turnover is more than Rs ten crores . our decision is in line with decision of Hon‟ble Supreme Court in the case of Topman Exports(supra) read in conjunction with provisions of Section 28(iiib), 28(iiid) and Section 80HHC of the 1961 Act . The AO shall allow relief to the assessee strictly in accordance with decision of Hon‟ble Supreme Court in the case of Topman Exports (supra) after considering assessee‟s factual matrix. We order accordingly.
|