COMMISSIONER OF INCOME TAX Vs. PUROLATOR INDIA LIMITED

JUDGEMENT

(1.) THIS appeal involves the following questions of law:

(2.) THE order passed by the Tribunal in this appeal is brief because of the reason that the Tribunal has simply followed (which it was supposed to) the decision of the ITAT Special Bench, Mumbai in the case of Topman Export v. ITO [ITA No. 5769/Mum./2006 decided on dated 11th August, 2009.]. By that judgment, the Special Bench of the Tribunal has held that the face value of DEPB is chargeable to tax Under Section 28(iiib) at the time of accrual of income, that is, when the application for DEPB is filed with the competent authority pursuant to exports and profit in sale of DEPB representing the excess of sale proceeds of DEPB over its face value is liable to be considered Under Section 28(iiid) at the time of its sale.

(3.) SINCE the Tribunal had simply followed Special Bench decision in Topman Exports (supra) which stands over ruled, we set aside the order passed by the Tribunal and remit the case back to the Tribunal to decide this appeals on merits after taking into account factual position in all this case. 5. The appeal stands disposed of on above terms.