2011 (10) TMI 654 - AT - Income Tax

Summary

Issues involved: Appeal against order related to computation of deduction u/s 80 HHC in respect of DEPB credit, following Special Bench decision in Topman Exports case, challenge by Revenue in High Court, reversal of decision by Bombay High Court.

Computation of deduction u/s 80 HHC: The appeal was filed by the assessee against the order of CIT(A) regarding the computation of deduction u/s 80 HHC in respect of DEPB credit. The Tribunal relied on the Special Bench decision in the Topman Exports case and directed the Assessing Officer (A.O.) to modify the order. The Hon'ble High Court of Delhi noted that the Tribunal had followed the Special Bench decision, which was subsequently overruled by the Bombay High Court in CIT vs. Kalpataru Colours and Chemicals. Consequently, the High Court set aside the Tribunal's order and remitted the cases back to the Tribunal for a fresh decision based on the factual position. The issue was restored back to the A.O. for verification and a speaking order after giving the assessee a reasonable opportunity to be heard.

Decision: The Tribunal allowed the appeal of the assessee for statistical purposes, pronouncing the order in the Open Court on 25th October 2011.