24 July 2008
Value received on transfer of DEPB not taxable: ITAT Mumbai
Mumbai Bench of Income Tax Appellate Tribunal (ITAT) has ruled that the value received on transfer of DEPB does not constitute profit and thus can not be taxed. The Tribunal held this in the three separate cases M/s Glenmark Laboratories Ltd. v Dy. Commissioner of Income Tax, Mumbai; M/s Shrijee India Export Pvt. Ltd v Dy. Commissioner of Income Tax, Mumbai and M/s. Vijay Silk House (Delhi) Ltd. v Dy. Commissioner of Income Tax, Mumbai.
In three separate judgments pronounced in the last week of January, the Tribunal has directed assessing officers of the appellants to consider only profit on transfer of DEPB for the purpose of deduction under Sec. 80 HHC of the Income Tax Act and not the entire receipt against transfer of such DEPB.
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