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Section 80HHC, read with section 28(iiid), of the Income-tax Act, 1961 - Deductions - Exporters - Assessment years 2001-02 and 2004-05 - Whether not entire sale value of DEPB but sale value less face value of DEPB would be profit on transfer of DEPB and would fall under section 28(iiid) for purpose of determining profits of business under Explanation (baa) to section 80HHC - Held, yes [In favour of assessee] CASE REVIEW ACG Associated Capsules (P.) Ltd. v. CIT [2012] 18 Taxmann.com 137 (SC) followed. CASES REFERRED TO Topman Exports v. ITO [2009] 33 SOT 337 /[2010] 124 ITD 1 (Mum.) (SB) (para 3), CIT v.Kalpataru Colours and Chemicals [2010] 192 Taxman 435 (Bom.) (para 4), CIT v. Shri Ram Honda Power Equip [2007] 289 ITR 475/ 158 Taxman 474 (Delhi) (para 4), Topman Exports v.CIT [Civil Appeal Arising Out SPL (C) No. 26558 of 2010] (para 5) and ACG Associated Capsules (P.) Ltd. v. CIT [2012] 18 Taxmann.com 137 (SC) (para 5). JUDGMENT A. K. Patnaik, J. - Leave granted. 2. 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. 3. The facts very briefly are that the appellant is engaged in manufacturing and exporting leather garments. 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'). 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 not allow the amount of deduction claimed by the appellant under Section 80HHC. 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. 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…

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