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TMI Blog2014 (2) TMI 119X X X X Extracts X X X X X X X X Extracts X X X X ..... rts v. CIT [2012 (2) TMI 100 - SUPREME COURT OF INDIA] followed - DEPB has direct nexus with the cost of imports for manufacturing an export product, any amount realized by the assessees over and above the DEPB on transfer of the DEPB would represent profit on the transfer of DEPB and while the face value of the DEPB will fall under clause (iiib) of Section 28, difference between the sale value an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his court concluded as follows (page 67) : "The aforesaid discussion would show that where an assessee has an export turnover exceeding Rs. 10 crores and has made profits on transfer of DEPB under clause (d) of section 28, he would not get the benefit of addition to export profits under third or fourth proviso to sub-section (3) of section 80HHC, but he would get the benefit of exclusio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... over exceeding Rs. 10 crores and as the assessee did not fulfil 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 va ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... gment . . ." For the same reasons, the impugned judgment and order of the Gujarat High Court is set aside and the Assessing Officer is directed to compute the deduction under section 80HHC of the Income-tax Act, 1961, in the light of the observations made by this court in Topman Exports as noted above. Civil appeal is allowed as above with no order as to costs. - - TaxTMI - TMITax - Income ..... X X X X Extracts X X X X X X X X Extracts X X X X
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