TMI Blog2012 (4) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... present profits chargeable u/s Clause (iiid) and the deduction u/s 80HHC has to be computed accordingly. It was held that only 90% of the “profits” can be excluded by applying Explanation (baa) below Section 80HHC – Decided in favor of assessee. Applicability of third proviso to Section 80 HHC(3) is not examined and have been referred back to the Assessing Officer. - ITA 1191/2011 - - - Dated: ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the business of manufacture and export of leather garments. During the assessment year in question i.e. 2002-03, it had earned incentive i.e. duty drawback of Rs. 9,77,618/- and credit under Duty Entitlement Pass Book Scheme (DEPB) of Rs. 5,72,00,818/- totaling Rs. 5,81,77,436/- on the exports made by them. 3. The DEPB was transferred by the assessee to others and profit of Rs. 20,75,382/- wa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ng 100% of these receipts from the eligible profits. He further held that the assessee did not satisfy the two conditions prescribed in the third proviso to Section 80HHC (3) of the Act, which it was required to, because its turnover exceeded Rs.10 crore. 6. The Commissioner of Income Tax (Appeals), however, following the decision of the Special Bench of the Mumbai High Court in Topman Export Vs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and therefore, the order of the Commissioner of Income Tax (Appeals) granting relief was incorrect. The matter has been restored back to the Assessing Officer to examine whether any deduction was to be granted in view of the said judgment. 8. The decision of Bombay High Court in the case of Kalpataru Colours Chemicals (supra) has been set aside and reversed by the Supreme Court in their decisi ..... X X X X Extracts X X X X X X X X Extracts X X X X
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