2012 (4) TMI 52

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.... Having heard counsel for the parties, we frame the following substantial question of law : "Whether the Income Tax Appellate Tribunal has erred in holding that duty entitlement pass book credit was cash assistance within the meaning of clause (iiib) to Section 28 of the Income Tax Act, 1961 and the entire amount including the premium received on transfer of DEPB was "profit" under clause (iiid)....

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....ntives and other income. 5. The return filed by the assessee was not taken for scrutiny and was processed u/s 143(1) and accordingly, the claim under Section 80HHC was allowed. Thereafter, vide notice stated 25.03.2009 under Section 148 of the Act, the assessment was taken up for scrutiny and an assessment order was passed. The Assessing Officer treated the gross amount of DEPB (i.e. premium re....

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....HHC of the Act. However, he held that the conditions of the third proviso to Section 80HHC (3) of the Act were not fulfilled and therefore only conditional benefit in computation would be granted. 7. Two cross appeals filed by the Revenue as well as the assessee have been disposed of by the impugned order dated 29.3.2011. The Tribunal has followed the decision of the Bombay High Court in the ca....

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....use (iiib) of Section 28 of the Act whereas the premium received thereon on transfer will represent profits chargeable under Section Clause (iiid) and the deduction under Section 80HHC has to be computed accordingly. It was held that only 90% of the "profits" can be excluded by applying Explanation (baa) below Section 80HHC. 9. In view of the aforesaid position, we answer question of law mentio....