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2016 (5) TMI 414 - AT - Income TaxDeduction u/s.80HHC - exclusion of profit on sale of DEPB licence for computing the deduction u/s.80HHC - Held that:- en a court interprets a provision, it decides as to what is the meaning and effect of the words used by the Legislature. It is a declaration regarding the statute. In other words, the judgment declares as to what the Legislature had said at the time of the promulgation of the law. The declaration is - This was the law. This is the law. This is how the provision shall be construed. The Hon’ble Supreme Court in the case of Topman Exports Vs. CIT [2012 (2) TMI 100 - SUPREME COURT OF INDIA ] has declared the law on the issue regarding exclusion or inclusion of value of DEPB licence on its sale for computing the deduction under section 80HHC. According to the Hon’ble Supreme Court, the entire sale proceeds of DEPB licence is not to be excluded from the profit of the business for computing deduction under section 80HHC, but only profit arising out of the sale of the DEPB licence is to be excluded. Therefore, in view of subsequent decision of the Hon’ble Supreme Court, which has explained the position of law, when it was brought on the statute book, resulted an apparent error in the order of the Tribunal, which requires rectification. Therefore, we recall the finding of the Tribunal on ground no.3 also, and restore this ground for adjudication afresh.
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