2010 (4) TMI 1091

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..... AGARWAL, VICE-PRESIDENT:   These are three appeals by the Revenue against the orders of the CIT(A), Valsad dated 28.02.2007 arising out of orders of the Assessing Officer under Section 143(3) r.w.s. 147 of the Income Tax Act, 1961. Since assessee being same and the grounds raised in the appeals being similar, for the sake of convenience, we dispose of the appeals by this common order. ....

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....he DEPB license. 3. On the facts and in the circumstances of the case the ld.CIT(A) has erred in allowing a part of sales value of the DEPB license i.e. Rs. 1,02,56,895/- as a profit of the business and only Rs. 437621 as a profit on sale of the DEPB license u/s.28(iiid) of the Act. 4. At the time of hearing before us, both the parties admitted that the issue involved in both the appeals is ....

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.... sub-s. (3) r/w Explanation, are to be included in the eligible amount-Entire mechanism for computation of profits derived from exports under s. 80HHC has been specifically provided for in the section itself and there is no need to be governed by the understanding of the expression ' profits derived from export ' in common parlance-It is obvious that 10 per cent of such incomes representing ' the ....

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....iia) to (iiie) of s. 28 along with s. 80HHC(3) is that all the export incentives including DEPB and DFRC etc. be considered as separate business income and not to reduce them from the cost of purchases-Therefore, in the scheme of s. 80HHC, the face value of DEPB cannot be reduced from the purchase cost but is separate income under s. 28(iiid), which accrues at the time of making application pursua....