2013 (4) TMI 637

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....a Singh, AM:- The appeal is filed by the assessee against the orer dated 21.05.2006 of CIT(A) for assessment year 2002-03 passed u/s.154 of the Income-tax Act. The dispute raised is regarding legality of the order passed u/s.154 and on merit of additions made in the said order. 2. The facts in brief are that the assessee for the relevant year, had claimed the deduction u/s.80HHC in respect o....

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....the third proviso applies as per which 90% of DEPB income in ratio of export turnover to total turnover to total turnover can be added to business profit only if. i) there is option available to the assessee to choose either Duty Drawback or Duty Entitlement Pass Book being duty remission scheme; ii) the rate of Duty Drawback credit attributable to the custom duty is higher than the credit a....

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....ime of hearing of the appeal, the Ld. AR of the assessee did not press the ground regarding legality of the order u/s.154 of the Income-tax Act. The ground raised in this regard is, therefore, dismissed as not pressed. 4. As regards the merit of the case, it was argued by the Ld. AR that there was an error in the order of the CIT(A), as entire DEPB income cannot be considered as business profit....

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....al Bench of the Tribunal in the case of Topman Exports (supra) the face value of DEPB lincence has to be considered to be income u/s. 28(iiib) which will be covered by the first proviso to section 80HHC(3) and excess of sale proceeds over the sales value has to be considered as business profit u/s.28(iiid) to which only third proviso to section 80HHC(3) can be applied. Said decision of the Special....