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TMI Blog2019 (3) TMI 141X X X X Extracts X X X X X X X X Extracts X X X X ..... e Assessee was entitled to claim only the Net value of the sale of DEPB (Duty Entitlements Pass Book) after deducting its face value for the purpose of computing the benefit under Section 80HHC of the Act applying explanation (baa) of the said provision. 2. The learned Tribunal in the impugned order in paragraph No. 8 held as under:- "8. The third issue raised vide ground No.4, the assessee has claimed that under Section 28(iiid) only the profit and transfer of Duty Entitlements Pass Book Scheme was chargeable to income tax under the head profits and gains of business and the entire value of DEPB received and/or sold. According to the assessee, the face value of the DEPB allotted was to be treated as cost of such DEPB notwithstanding t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... -section (3) of Section 80HHC, but he would get the benefit of exclusion of a smaller figure from 'profits of the business' under Explanation (baa) to Section 80HHC and there is nothing in Explanation (baa) to Section 80HHC to show that this benefit of exclusion of a smaller figure from 'profits of the business' will not be available to an assessee having an export turnover exceeding Rs. 10 crores. In other words, where the export turnover of an assessee exceeds Rs. 10 crores, he does not get the benefit of addition of ninety per cent of export incentive under clause (iiid) of Section 28 to his export profits, but he gets a higher figure of profits of the business, which ultimately results in computation of a bigger export p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... " 5. He therefore submits that the very foundation of the order passed by the learned Tribunal no longer exists and the substantial question of law deserves to be answered in favour of the Assessee. The questions of law which arise in the present case are quoted below for ready reference:- "3. Whether on the facts and in the circumstances of the case the Income Tax Appellate Tribunal was right in law in not appreciating that when DEPB receivable is assessed as income under u/s. 28(iv) of the Income Tax Act, 1961, the same has to be treated as export receipts while computing deduction u/s. 80HHC since 28(iv) was not referred to in Explanation (baa) to section 80HHC?; 4. Whether on the facts and in the circumstances of the case the Inco ..... X X X X Extracts X X X X X X X X Extracts X X X X
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