TaxTMI 
TaxTMI 
2008 (8) TMI 340
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....es of the case and considering the fact that clause (iiid) was inserted in section 28 of the Income-tax Act, 1961, retrospectively with effect from April 1, 1998, vide the Taxation Laws (Amendment) Act, 2005, the Tribunal was justified in holding that the income derived by the assessee from the sale of DEPB licences was not the profit and gains from the industrial undertaking which was held to be eligible for claiming deduction under section 80-IB of the Act, 1961, otherwise ?" 3. The controversy lies in a very narrow compass, inasmuch as, the Assessing Officer noticed, during the assessment proceedings, in respect of that assessee, that the assessee has shown income from sale of import entitlements (income from sale of DEPB licences), in ....
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.... Chemicals Ltd. v. CIT reported in [2003] 262 ITR 278, the income to be eligible for exemption, should be the income derived from, and not attributable to, the undertaking. 6. It is contended, by learned counsel for the appellant, that after passing of the assessment order, the provisions of the Income-tax Act have undergone change, inasmuch as, the Taxation Laws (Second Amendment) Bill, 2005, was introduced in Lok Sabha on December 6, 2005, and was passed as the Taxation Laws (Amendment) Act, 2005, and was brought into force on October 31, 2005. By section 3 thereof, section 28 of the Income-tax Act was amended by inserting clause (iiid), after existing clause (iiic), with retrospective effect from April 1, 1998, which clause (iiid) reads....
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....ect to the provisions of this section, be allowed, in computing the total income of the assessee, a deduction from such profits and gains of an amount equal to such percentage and for such number of assessment years as specified in this section.... (4) The amount of deduction in the case of an industrial undertaking in an industrially backward State specified in the Eighth Schedule shall be hundred per cent. of the profits and gains derived from such industrial undertaking for five assessment years beginning with the initial assessment year and thereafter twenty five per cent. (or thirty per cent., where the assessee is a company) of the profits and gains derived from such industrial undertaking." 11. Thus, according to this section, the ....