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TMI Blog2016 (1) TMI 579X X X X Extracts X X X X X X X X Extracts X X X X ..... ession. It was further noticed that an assessee having export turnover exceeding ₹ 10 crores, the profits computed under sub-section (3) of Section 80HHC of the Act shall be further increased by amount which bears to 90% of the sum referred in clause (iiid) and (iiie) of Section 28 of the Act, the same proportion as the export turnover bears to the total turnover. Accordingly, the Assessing Officer was directed to re-compute the deduction under Section 80HHC as amended by Taxation Laws (Amendment) Act, 2005 with retrospective effect from 1.4.1998. Since, the matter has been remitted back to the Assessing Officer for recomputation, therefore, question Nos. do not survive for consideration. Exclusion of FDR interest from the business ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... export? ii. Whether the Taxation Amendment Act, 2005 introduced with effect from 1.4.1998 can be used to deny a benefit accruing to the assessee on account of incentives earlier granted and whether the amendment would be hit by the principle of Promissory estoppel? iii. Whether the exclusion of FDR interest from the business income under section 80HHC of the Income Tax Act is justified particularly in the light of the fact that the issue is to be finally decided by the Supreme Court of India? 3. Put shortly, the facts necessary for adjudication of the present appeal as narrated therein are that the assessee is engaged in the business of rice shelling and derives income from export of rice as well as sale in the domestic market. Th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d order dated 13.4.2007 remanded the issue relating to eligibility of deduction of DEPB income under Section 80HHC of the Act in view of the amendment to Section 28 of the Act with retrospective effect from 1.4.1998. The Tribunal also upheld the view of the CIT(A) that the FDR interest could not be taken into consideration for allowing deduction under Section 80HHC of the Act. Hence, the present appeal. 4. We have heard learned counsel for the appellant-assessee. 5. Question Nos. (i) and (ii) being inter-connected are taken up together. The Tribunal held that as per clause (iiid) and (iiie) of Section 28 of the Act, any profit on transfer of DEPB scheme was to be considered as profits and gains of business or profession. It was furthe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... or collateral security to obtain various loans from the banks in the form of car loan, machinery loan, miscellaneous loan etc., it was held that it could not be construed to have direct nexus with the profits and gains of the industrial undertaking derived from export business activity which could be taken into account for calculating the deduction admissible under Section 80HHC of the Act. The relevant observations read thus:- We have given our thoughtful consideration to the submissions of the learned counsel for the assessee and do not find merit in the same. The Tribunal while deciding the controversy had placed reliance upon the Apex Court decisions in Commissioner of Incometax v. Sterling Foods [1999] 237 ITR 579, Pandian Chemica ..... X X X X Extracts X X X X X X X X Extracts X X X X
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