TaxTMI 
TaxTMI 
2018 (12) TMI 35
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.... substantial questions of law : "i. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the assessee, a supporting manufacturer, was entitled to deduction under Section 80HHC in respect of the DEPB and duty drawback and similar incentives disclaimed in its favour by the exporter ? ii. Whether, on the facts and in the circumstances of the case, the Appellate Tribunal was right in holding that the assessee, a supporting manufacturer, was entitled to deduction under Section 80HHC in respect of the DEPB and duty drawback disclaimed in its favour by the exporter without taking note of the Third Proviso to Sub-Section (3) of Section 80HHC and the difference between the provisions of Sub....
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....order of the Income Tax Appellate Tribunal that the claim of the assessee that it is part of the sale consideration was rejected in the background of Rule 18BBA(2) of Duty Drawback Rules. 11. As far as Commissioner of Income Tax (Appeals) is concerned, he had specifically pointed out that the rate of duty drawback given to the assessee was less than the credit available under the scheme. Before the Income Tax Appellate Tribunal, the Revenue did not raise this issue except the issue taken by the assessee as to the allowability of the claim. Thus, considering the finding given in the order of the Assessing Officer that receipts of incentives were not part of the sale consideration, the only question that remains to be considered is as regar....
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....mmission, interest, rent, charges or any other receipt of similar nature including any such receipts and (2) the profits of any branch, office, warehouse or any other establishment of the assessee situated outside India. Thus, ninety per cent., of the DEPB which is "cash assistance" against exports and is covered under clause (iiib) of Section 28 will get excluded from the "profits of the business" of the assessee, if such DEPB has accrued to the assessee during the previous year. 13. Considering the pronouncement of the Apex Court on this, we hold that the assessee's claim could not be rejected straight away by the Revenue. Thus on the findings given by the Assessing Officer that export incentive was not part of the sale consideratio....