IN THE HIGH COURT OF DELHI AT NEW DELHI
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ITA 191/2012, ITA 192/2012, 193/2012 and 194/2012
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PRAFFUL EXPORTS ..... Appellant
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Through: Dr.Rakesh Gupta and Ms.Rani
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Kiyala, Advocates
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versus
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CIT ..... Respondent
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Through: Mr.Sanjeev Rajpal, Advocate
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CORAM:
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HON'BLE MR. JUSTICE SANJIV KHANNA
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HON'BLE MR. JUSTICE R.V.EASWAR
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O R D E R
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17.05.2012
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By an order dated 23.3.2012, the following question was framed:
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?Whether the Income Tax Appellate Tribunal was right in holding that
export incentive in form of DEPB receipt not to be taken into under
Explanation baa to section 80HHC of the Income Tax Act, 1961??
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We have examined the order dated 23.3.2012 and it is seen that
there are clerical errors in the question framed on 23.3.2012. The same
is reframed and should read as under:-
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?Whether the Income Tax Appellate Tribunal was right in holding that
export incentive in form of DEPB credit is not to be taken into
consideration for the purpose of Explanation (baa) and Sub-section 3 to
Section 80 HHC of the Income Tax Act, 1961?
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Having heard learned counsel for the parties, we hold that the
issue is squarely covered by the decision of the Supreme Court in the
case of Topman Exports v. Commissioner of Income Tax (Mumbai); (2012) 247
CTR (SC) 353. In the said decision, it has been held that DEPB credit is
covered by Section 28 (iiib) of the Income Tax Act and, accordingly,
deduction has to be computed while considering Explanation (baa) and Sub-
section 3 to Section 80HHC.
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The question of law mentioned above is, accordingly answered in
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negative, i.e., in favour of the appellant-assessee and against the respondent-revenue. The assessing officer will re-compute the deduction
under Section 80HHC in terms of the ratio and the decision of the Supreme
Court in the case of Topman Exports (Supra).
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The appeal is, accordingly, disposed of.
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SANJIV KHANNA, J
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R.V.EASWAR, J
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MAY 17, 2012
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sv
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$ 17
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