Technocraft Industries (India) Ltd v. The Commissioner Of Income Tax-8 Mumbai & Anr

srk IN THE HIGH COURT OF JUDICATURE AT BOMBAYORDINARY ORIGINAL CIVIL JURISDICTIONINCOME TAX APPEAL NO.300 OF 2012 Technocraft Industries (India) Ltd. ...Appellant Versus The Commissioner of Income Tax-8 Mumbai & anr. ...Respondents Mr.Pankaj R. Toprani with Ms.Kadambari V. Surve for appellant.Mr.Vimal Gupta for respondent. CORAM: DR.D.Y. CHANDRACHUD & M.S.SANKLECHA, JJ. March 20, 2012. P.C. 1.This appeal arises out of a decision of the Income Tax Appellate Tribunal dated 2 December 2011. The Assessment Year to which the appeal relates is AY 2002-2003. 2.The following substantial questions of law have been raised in this appeal by the assessee: (a)Whether the the Tribunal was justified in holding that entire amount received on the sale of the DEPB entitlement passbook represent profits chargeable under Section 28(iiid) of Income Tax Act; (b)Whether on the facts and circumstances of the case and in law the Tribunal was justified in disallowing deduction under Section 80HHC on DEPB License sale (export incentive) of Rs.7,46,94,258/-; (c)Whether on the facts and circumstances of the case and in law the Tribunal was justified in reducing 90% of the gross interest while allowing relief under Section 30HHC as against netting off of interest claimed by the appellant? 3.The appeal is admitted and by consent is taken up for hearing and final disposal. Counsel appearing on behalf of the assessee and the counsel appearing for the Revenue state that questions (a) and (b) are covered in favour of the assessee and against the Revenue by the judgment of the Supreme Court in Topman Exports Vs. Commissioner of Income-tax[1]. As regards question (c), counsel appearing on behalf of the assessee and the counsel appearing on behalf of the Revenue state that the question would be covered in favour of the assessee and against the Revenue by the judgment of the Supreme Court in ACG Associated Capsules Pvt. Ltd. Vs. Commissioner of Income Tax[2]. 1. [2012] 18 taxmann.com 120 (SC) 2. (2012) 67 DTR Judgments 205 itxa-300-2012 4.In view of the aforesaid position, all the three questions are answered in terms of the judgments of the Supreme Court in favour of the assessee and against the Revenue. However, in terms of the directions issued by the Supreme Court the proceedings will stand restored back to the Assessing Officer to compute the deduction in accordance with the judgments of the Supreme Court. The appeal shall stand accordingly disposed of. There shall be no order as to costs. (DR.D.Y. CHANDRACHUD,J.) (M.S.SANKLECHA, J.)