TaxTMI 
TaxTMI 
2015 (6) TMI 496
X X X X Extracts X X X X
X X X X Extracts X X X X
....rned Commissioner of Income Tax (Appeals)-VI, Ahmedabad presents this appeal against the same before your Honor on the following grounds: 1. The Ld. Commissioner of Income-tax (Appeals) erred both in law and on facts in holding that Assessing Officer's action in reducing the claim of deduction U/s. 80HHC by Rs. 30,85,077/- was correct. On the facts and circumstances as well as in view of the correct legal position, the deduction u/s. 80HHC in respect of Export Incentives ought to have been allowed as claimed. It is submitted that the same be held so now. 2. The Ld. Commissioner of Income-tax (Appeals) erred in law and on facts in not allowing the ground of the appellant that deduction U/s. 80HHC was allowable as claimed in the Ret....
X X X X Extracts X X X X
X X X X Extracts X X X X
....see and keeping in view the decision of the Special Bench in the case of Topman Exports vs. ITO. The relevant part of the order of the Hon'ble ITAT is reproduced hereunder: "5.2 In the light of aforesaid findings of the Special Bench and the undisputed submissions of the Id. A.R. we consider if fair and appropriate to set aside the order of the Id. CIT(A) and restore the matter to the file of the AO for deciding the issue relating to claim of deduction u/s. 80HHC of the Act in relation to the amount of DEPB, afresh in accordance with law, after allowing sufficient opportunity to the assessee and keeping in view the aforesaid decision of the Special Bench. With these directions, ground Nos. I to 3 in the appeal are disposed of." 2.....
X X X X Extracts X X X X
X X X X Extracts X X X X
....nt order and appellant's submission. The issue of claim of deduction under section 80HHC on DEPB income was set-aside by ITAT to the file of AO to be decided as per amended provisions and special bench decision in the case of Topman exports. Assessing officer examined this issue in detail and found that appellant did not fulfill the requirements of the amended provisions and the decision of special bench of ITAT in the case of Topman exports is overruled by Bombay High Court in the case of Kalpataru colours and chemicals. It is true that the matter is pending in Supreme Court however as things stands today, the decision of Bombay High Court is binding and the same is to be followed. The decision of Bombay High Court is quoted by the assessi....
X X X X Extracts X X X X
X X X X Extracts X X X X
..... 28 to his export profits, but he gets a higher figure of profits of the business, which ultimately results in computation of a bigger export profit. The High Court, therefore, was not right in coming to the conclusion that as the assessee did not (sic) have the export turnover exceeding Rs. 10 crores and as the assessee did not fulfill the conditions set out in the third proviso to s. 80HHC(3), the assessee was not entitled to a deduction under s. 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 s. 28(iiid) would not include the face value of the DEPB. It is a well-settled principle of statutory interpretation of a taxing sta....