TaxTMI 
TaxTMI 
2013 (6) TMI 132
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....vs. CIT [(2012) 247 CTR (SC) 353], to the extent it relates to calculation of profits from transfer of DEPB licenses, to the facts of the present case ? (b) The Ld.Tribunal erred in law and on facts by holding that the reliance placed on Topman Experts (supra) is misplaced because the Hon'ble Supreme Court was considering the provisions of section 80HHC ? (c) The Ld.Tribunal erred in law and on facts by not holding that the ratio of decision in case of Liberty India [317 ITR 218 (SC)] and Topman Exports (supra) are not consistent with each other and can coexist and in-fact supplement each other ? (d) The Ld.Tribunal erred in law and on facts by failing to appreciate that what is to be deducted u/s 80IB and like provisions under Cha....
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....ted in (2009) 317 ITR 218 (SC). The assessee is, therefore, before us. 3. The learned counsel Shri Mehta appearing for the appellant-assessee vehemently contended that the issue is covered in favour of the assessee by virtue of the decision of the Apex Court in the case of Topman Exports (supra). He argued that this precise controversy was not before the Apex Court in the case of Liberty India (supra) and, therefore, the Tribunal committed error in following such decision. 4. In our opinion, however, the Tribunal did not commit any error. The question which the assessee raises in the present Tax Appeal was precisely before the Apex Court in the case of Liberty India (supra) as can be seen from the facts recorded in paragraph 5 of the ....
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.... Scheme as well as Passbook Scheme under the Exim Policy; that entitlements under DEPB Scheme were allowed at pre-determined and prenotified rates in respect of exports made under the Scheme and consequently, DEPB did not constitute a substitute for duty drawback. According to CIT(A), credit under DEPB could be utilized by the exporter himself or it could be transferred to any other party; that such transfer could be made at higher or lower value than mentioned in the Passbook and, therefore, DEPB cannot be equated with the duty drawback, hence, the appellant who had received Rs. 20,95,740/- on sale of DEPB licence stood covered by the decision of this Court in Sterling Food (supra). Hence, to that extent, appellant was not entitled to dedu....
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....e valued on the basis of purchase cost net of specified duty on inputs (i.e. duty recoverable from the Department at later stage) arising on account of rebates, duty drawback, DEPB benefit etc. Profit generation could be on account of cost cutting, cost rationalization, business restructuring, tax planning on sundry balances being written back, liquidation of current assets etc. Therefore, we are of the view that duty drawback, DEPB benefits, rebates etc. cannot be credited against the cost of manufacture of goods debited in the Profit & Loss account for purposes of Sections 80-IA/80- IB as such remissions (credits) would constitute independent source of income beyond the first degree nexus between profits and the industrial undertaking." ....