TMI Blog2013 (10) TMI 473X X X X Extracts X X X X X X X X Extracts X X X X ..... ty Entitlement Pass Book (DEPB) and Duty Free Replenishment Certificate (DFRC) are not to be treated as profit for working out deduction under section 80HHC of the Income Tax Act. It is also held that when DEPB is sold by exporter, his profit on transfer of DEPB would be sale value of DEPB less face value of DEPB (cost of acquisition of DEPB). Further held that face value of DEPB being cash assist ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ts in allowing the assessee's appeals and deleting the addition in respect of claim of Rs.1,03,93,647/- u/s. 80HHC pertaining to DEPB relying on the decision of Special Bench (Mumbai) in the case of Top Man Exports v. ITO whereas the said decision has been reversed by the Hon'ble Mumbai High Court in the case of Kalpataru Colours Chemicals ? 2.00. At the outset, it is required to be noted tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... That is how the present appeal is placed before the Bench for fresh consideration. 3.00. Having heard Mr.Manish Bhatt, learned counsel appearing on behalf of the revenue and Mr.Tushar Hemani, learned advocate appearing on behalf of the assessee and on consideration of the impugned judgement and order passed by the ITAT, it appears that while holding the issue in favour of the assessee, the learn ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... upon by the ITAT while passing the impugned order). The Hon'ble Supreme Court in the case of Topman Exports (supra) has specifically observed and held that the entire sale proceeds of Duty Entitlement Pass Book (DEPB) and Duty Free Replenishment Certificate (DFRC) are not to be treated as profit for working out deduction under section 80HHC of the Income Tax Act. It is also held that when DEPB is ..... X X X X Extracts X X X X X X X X Extracts X X X X
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