Tax Deductions: Deduction under section 80HHC with respect to depb-interpretation and controversy regarding section 28(iiid) and third proviso to section 80HHC(3)
Recently, reversing the decision of the Special Bench of the ITAT in the case of Topman Exports v. ITO [2010] 124 ITD 1 (Mum.), the Bombay High Court in the case of CIT v. Kalpataru Colours & Chemicals [2010] 192 Taxman 435 denied the deduction under section 80HHC regarding consideration on transfer of DEPB giving rise to a controversy regarding allowability of deduction under section 80HHC with respect to consideration on transfer of export incentive in the nature of DEPB, i.e., Duty Entitlement Pass Book Scheme being the Duty Remission Scheme.
