M/S Topman Exports vs Commr Of Income Tax,Mumbai on 8 February, 2012
6. We have heard the arguments of both the sides and also perused the
relevant material available on record. As regards the issue involved in ground
No. 1(a) of the assessee's appeal, it is observed that as per the 5th proviso to
section 80HHC(3) of the Act, in case the computation under Clause (a) or (b)
or (c) of sub section 3 of section 80HHC of the Act is a loss, such loss is to be
set off against the amount which bears to 90% of any sum referred to in
clause (iiia) or clause (3) or clause (iiic) of section 28 of the Act as the case
may be. As held by the Hon'ble Supreme Court in the case of Topman
Exports vs. CIT, 342 ITR 249 (SC), the face value of DEPB falls u/s 28(iiib)
while the duty drawback falls u/s 28(iiic) of the Act.