2020 (3) TMI 637

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....of law from the order of the Income Tax Appellate Tribunal dated 14.05.2010, in which the matter regarding taxability of DEPB licence and deduction under Section 80HHC of the Act was remanded back by the learned Tribunal to the Assessing Authority to be decided in the light of a Special Bench in the course of "Topman Exports -Vs- ITO 318 ITR (AT) 87" . The relevant portion in paragraph No.4 of the order is quoted below for ready reference. "4. We have heard the rival submissions and perused the orders. Question raised in this appeal is on treatment of DEPB for the purpose of computing deduction under Section 80HHC of the Act. How the DEPB benefits have to be considered, whether at the time of receipt or at the time of accrual or at the t....

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.... on the relevant issue, which are available to the AO when he considers it afresh. 8. Needless to mention assessee has to be given a fair chance to represent its case. 9. The Misc.Petition filed by the Revenue is disposed of with the above directions." 3. Thus, the matter stood remanded back to the Assessing Authority finally even with the later order passed in the Miscellaneous Application. It is brought to our notice that the Hon'ble Supreme Court, in the case of "M/s.Topman Exports -Vs- C.I.T" decided on 08.02.2012 reported in [2012] 3 S.C.C.593 has reversed the view of the Bombay High Court decision and has held in favour of the Assessee as under. "22. The aforesaid discussion would show that where an assessee has an expo....

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....ttled principle of statutory interpretation of a taxing statute that a subject will be liable to tax and will be entitled to exemption from tax according to the strict language of the taxing statute and if as per the words used in explanation (baa) to Section 80HHC read with the words used in clauses (iiid) and M/S Topman Exports vs Commr Of Income Tax,Mumbai on 8 February, 2012 Indian Kanoon - http://indiankanoon.org/doc/54571471/ 22 (iiie) of Section 28, the assessee was entitled to a deduction under Section 80HHC on export profits, the benefit of such deduction cannot be denied to the assessee. 23. The impugned judgment and orders of the Bombay High Court are accordingly set-aside. The appeals are allowed to the extent indicated in th....