TMI Blog2018 (12) TMI 35X X X X Extracts X X X X X X X X Extracts X X X X ..... ad "Profits and gains of business or profession" as reduced by ninety per cent., of any sum referred to in clause (iiia), (iiib), (iiic), (iiid) and (iiie) of Section 28 - 90% of the DEPB which is "cash assistance" against exports and is covered under clause (iiib) of Section 28 will get excluded from the "profits of the business" of the assessee, if such DEPB has accrued to the assessee during the previous year - Decided against Revenue. - Tax Case Appeal Nos.120 & 122 of 2010 - - - Dated:- 25-10-2018 - Mr.Justice T.S. Sivagnanam And Mrs.Justice V. Bhavani Subbaroyan For the Appellant : Mrs.R.Hemalatha For the Respondent : Mr.Quadir Hoseyn COMMON JUDGMENT T.S.SIVAGNANAM J. Heard the learned counsel for the appe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the decision of the Supreme Court in the case of Commissioner of Income Tax Vs. Baby Marine Exports (290 ITR 323) was applicable to the assessee's case without noticing that the said case related to export premium whereas in the assessee's case, the issue related to DEPB/duty drawback, etc. disclaimed in its favour by the exporter? 4. In the assessee's own case, the above questions of law were decided by a Division Bench of this Court, to which, one of us (TSSJ) was a party, in TCA.No.401 of 2009. The said appeal was heard along with three other connected appeals in TCA.Nos.567, 1013 and 1106 of 2009. By a comm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o pay customs duty on its imports, therefore, the cash assistance received under the DEPB scheme would fall under Clause (iiib) of Section 28 and is chargeable to income-tax under the head Profits and gains of business or profession even before it was transferred to the assessee by the export house. Thus, the Apex Court held that there was no justification to treat the amount which is received by an exporter on the transfer of the DEPB any differently than the profits which are made on the sale of an import licence under clause (iiia) of Section 28 of the Act. The Apex Court further pointed out that having regard to the decisions of 80HHC of the Act and the Explanation (baa) under Section 80 HHC of the Act giving the formula for working ..... X X X X Extracts X X X X X X X X Extracts X X X X
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