The appellant filed appeals before the Income Tax Appellate Tribunal for short the Tribunal and the Tribunal following the order dated 11.08.2009 of the Special Bench of the Tribunal at Mumbai in the case of M s Topman Exports allowed the appeals and held that the face value of the DEPB will be cash assistance against export and will fall under Section 28 iiib of the Act and the sale value less the face value of the DEPB will be profit on transfer of DPB and will fall under Section 28 iiid of the Act.
The appellant filed appeals before the Commissioner of Income Tax Appeals but the Commissioner of Income Tax Appeals sustained the orders of the Assessing Officer.
For the assessment years 2001 2002 and 2004 2005, the appellant filed returns of income claiming deductions in respect of profits retained for export business under Section 80HHC of the Income Tax Act, 1961 for short the Act .
Aggrieved, the Revenue preferred the appeals ITA No.185 of 2011 in respect of assessment year 2001 2002 and ITA No.308 of 2011 in respect of assessment year 2004 2005 before the Delhi High Court against the orders of the Tribunal.
The Assessing Officer held in the assessment orders that the entire sale value of Duty Entitlement Pass Book for short DEPB represents profit on transfer of DEPB under Section 28 iiid of the Act and did number allow the amount of deduction claimed by the appellant under Section 80HHC.
K. PATNAIK, J. Leave granted.
These are the appeals against the order dated 18.02.2011 as modified by the order dated 22.03.2011 of the Delhi High Court in ITA No.185 of 2011 and the order dated 21.02.2011 as modified by the order dated 22.03.2011 of the Delhi High Court in ITA No.308 of 2011.
The facts very briefly are that the appellant is engaged in manufacturing and exporting leather garments.
