TaxTMI 
TaxTMI 
2005 (2) TMI 447
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....ppreciating that even assuming that the DEPB entitlements were not covered by s. 28(iiia)(iiib), the same would not be deductible from profits of the business as per cl. (baa) of the Explanation to s. 80HHC and consequently the assessment order could not be treated as prejudicial to the interest of the Revenue. The appellant prays that either the order under s. 263 be quashed or a direction may be given to compute the deduction under s. 80HHC without reducing the DEPB entitlements from profits of the business. 2. The learned CIT erred on facts and in law in revising the assessment order under s. 263 of the IT Act, 1961 (the Act) without appreciating that the said assessment order was not erroneous as (a) DEPB entitlements are cover....
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....proposal to revise the order under s. 263. 2.2 In response to the show-cause notice, assessee filed detailed reply. But the same were not accepted. The learned CIT came to the conclusion that since the AO failed to examine the nature of export incentive on which deduction under s. 80HHC has been claimed, the assessment order was clearly erroneous and prejudicial to the interest of Revenue. Accordingly, the learned CIT directed the AO to restrict the allowable deduction under s. 80HHC at Rs. 7,27,41,219 as against deduction allowed by the AO at Rs. 14,99,76,320. Aggrieved by the order, assessee is in appeal before us with the above grounds. 3 The learned counsel appearing on behalf of the assessee, submitted that the learned CIT has co....
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....llowing deduction under s. 80HHC in respect of DEPB licence is in accordance with the view taken by Hon'ble Tribunal in Asstt. CIT vs. Pratibha Syntex Ltd.(1999) 63 TTJ (Ahd) 409, wherein the Hon'ble Tribunal held that DEPB licence is covered by s. 28(iiib); (b), the AO's action in allowing deduction under s. 80HHC in respect of export incentive earned in respect of export made through export house by treating export house turnover as part of export turnover in the proviso to s. (3) to s. 80HHC, is in accordance with the view taken by Hon'ble Tribunal in following cases: 1. Asstt. CIT vs. Ashwini Fisheries Ltd. (2001) 72 TTJ (Mad) 261 : (2001) 77 ITD 561 (Mad). 2. Eastern Leather Products (P) Ltd vs. Dy. CI....
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....9;ble Prime Minister had given an assurance to the delegation of exporters that the levy of income-tax on sale proceeds under the duty entitlement passbook scheme would not be applicable with retrospective effect. 6. We have considered the submissions and facts of the case. We are of the view that on the given facts and circumstances of the case, it cannot be said that the order of the AO is erroneous and prejudicial to the interest of Revenue. The AO has passed the order under s. 143(3) after taking all the necessary details and after discussing the case with the representative of the assessee. Now, the learned CIT has a different view on the issue involved. Under the circumstances, the decision of Hon'ble Supreme Court in the case ....