Itxa/1430/2011 Of The Commissioner Of Income Tax -17 Mumbai v. K. Mohan And Co (Exports )

IN THE HIGH COURT OF JUDICATURE AT BOMBAY ORDINARY ORIGINAL CIVIL JURISDICTION INCOME TAX APPEAL(LOD) NO.1985 OF 2010 The Commissioner of Income Tax-17 ..Appellant. V/s. M/s. K. Mohan & Co. (Exports) ..Respondent. Mr. D.K. Kamwal for the appellant. Mr. A.K. Jasani for respondent. CORAM : J.P. DEVADHAR AND SMT. R.P.SONDURBALDOTA JJ. DATED : 14TH JUNE, 2011 P.C. :- 1.The appeal is admitted on the following questions of law:- A.Whether on the facts and in the circumstances of the case and in law, the ITAT is legally right in holding that the entire amount received on sale of DEPB entitlement does not represent profit chargeable u/s.28 (iiid) of the Income Tax Act, 1961 ?law, the ITAT is legally right in holding that the entire amount received on sale of DEPB entitlement does not represent profit chargeable u/s.28 (iiid) of the Income Tax Act, 1961 ? B.Whether on the facts and in the circumstances of the case and in law, the ITAT is right in holding that the face value of DEPB is chargeable to tax u/s.28 (iiib) at the time of accrual of income ?law, the ITAT is right in holding that the face value of DEPB is chargeable to tax u/s.28 (iiib) at the time of accrual of income ? Counsel for the parties state that both the questions are answered in favour of the revenue by the decision in the case of CIT V/s. Kalpataru Colours & Chemicals reported in [2010] 328 ITR 451 (Bom). Accordingly, the appeal is disposed off by answering the question in favour of the revenue and against the assessee. No order as to costs. (SMT. R.P.SONDURBALDOTA, J.) (J.P. DEVADHAR, J.)