TMI Blog2013 (7) TMI 257X X X X Extracts X X X X X X X X Extracts X X X X ..... n 28, difference between the sale value and the face value of the DEPB will fall under clause (iiid) of Section 28 – restore the matter back to the file of AO with a direction to allow deduction u/s. 80HHC in terms of the decision of Hon'ble apex Court (supra). In favour of assessee for statistical purposes. - ITA No.814/Mum/2011 - - - Dated:- 13-6-2013 - Sh. B. R. Mittal And Rajendra,JJ. For the Appellant : Kishore I. Mehta For the Respondent : Ms. Neeraj Pradhan ORDER Per Rajendra, A.M. Challenging the order dt.29-11-2010 of the CIT(A)-35,Mumbai, Assessee has raised following Grounds of Appeal: 1. The learned Assessing Officer has erred in not allowing deduction u/s 8OHHC on sale of DEPB license amounting to Rs.3 1 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... see on sale of DE - PB, as profit on transfer of DEPB. He held that the assessee had not incurred any cost towards purchase of DEPB.AO further held that turnover of the assessee exceeded Rs. 10 Crores, that assessee was not entitled to deduction u/s 80HHC(3) of the Act. 2.1.Assessee preferred an appeal before the First Appellate Authority (FAA).After considering the submissions of the assessee and the assessment order he held that the export turnover of the assessee exceeded to Rs. 10 Crores that the assessee did not fulfill the conditions laid down in section 80HHC to claim deduction in respect of export incentives, that the ratio laid down by the special bench of Mumbai ITAT in the case of Topman Exports (29 DTR 153) was reversed by the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... by the provisions of 3rd proviso to section 80HHC (iii) and deduction will be allowable in relation to face value of DEPB.The Hon'ble Supreme Court reversed the decision of Hon'ble Bombay High Court in the case of CIT vs. Kalpataru Colours and Chemicals (supra), decision on which Id CIT(A) has placed reliance. 7. In view of above,we set aside the orders of authorities below and restore the matter back to the file of AO with a direction to allow deduction u/s. 80HHC of the Act in terms of the decision of Hon'ble apex Court (supra). Hence, ground of appeal taken by assessee is allowed for statistical purposes. In the result; appeal is allowed for statistical purposes." Respectfully following the order of the coordinating bench, we also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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