TMI Blog2020 (3) TMI 637X X X X Extracts X X X X X X X X Extracts X X X X ..... ET KOTHARI AND THE HON'BLE MR.JUSTICE R.SURESH KUMAR For the Appellant : Mr.M.P.Senthil Kumar For the Respondent : Mr.M.Swaminathan Senior Standing Counsel JUDGMENT ( Judgment of the Court was delivered by Dr. Vineet Kothari, J. ) The Assessee R.Sathiyan, Proprietor of M/s.Suriya International, Karur has filed this appeal under Section 260A of the Income Tax Act, raising the purported substantial questions of law from the order of the Income Tax Appellate Tribunal dated 14.05.2010, in which the matter regarding taxability of DEPB licence and deduction under Section 80HHC of the Act was remanded back by the learned Tribunal to the Assessing Authority to be decided in the light of a Special Bench in the course of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refore, for maintaining judicial discipline, we find it appropriate to modify the directions given to the AO in the order of the Tribunal as under: Hence in the interest of justice, we set aside the order of AO and Ld.CIT(A) on the aspect of Sec.80HHC deduction, and remit the issue back to the file of the AO for deciding it based on the principles evolving out of Topman Export's case and the decisions of any higher judicial authorities, on the relevant issue, which are available to the AO when he considers it afresh. 8. Needless to mention assessee has to be given a fair chance to represent its case. 9. The Misc.Petition filed by the Revenue is disposed of with the above directions. 3. Thus, the matter stood rema ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s the assessee did have the export turnover exceeding ₹ 10 crores and as the assessee did not fulfill the conditions set out in the third proviso to Section 80HHC (iii), the assessee was not entitled to a deduction under Section 80HHC on the amount received on transfer of DEPB and with a view to get over this difficulty the assessee was contending that the profits on transfer of DEPB under Section 28 (iiid) would not include the face value of the DEPB. It is a wellsettled principle of statutory interpretation of a taxing statute that a subject will be liable to tax and will be entitled to exemption from tax according to the strict language of the taxing statute and if as per the words used in explanation (baa) to Section 80HHC read wi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... icals (328 ITR 451)? (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 Section 28(iv) of the Income Tax Act, 1961, the same has to be treated as export receipts while computing deduction under Section 80HHC since 28(iv) was not referred to in Explanation (baa) to Section 80HHC? 5. Having heard the learned counsel for the parties and in view of the aforesaid legal position, since the matter stands remanded back to the Assessing Authority in the present case, we leave it free for the assessing authority to comply with the law laid down by the Hon'ble Supreme Court and pass appropriate order ..... X X X X Extracts X X X X X X X X Extracts X X X X
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