Topman

[CA.BHUPENDRASHAH]

???
Topman case wiil have a long lasting efect ?

[CA.BHUPENDRASHAH]

Special Bench judgement in Topman Exports reversed


In Topman Exports vs. ITO 318 ITR 87 (Mum)(SB)(AT) the Special Bench held that
for purposes of s. 80HHC only the "profit" on sale of DEPB entitlements (i.e.
the sale value less the face value) was required to be considered. In an appeal
by the department, this judgement has been reversed by the Bombay High Court
today, 29th June 2010.

[satyanveshi]

Infact, I am very much surprised with Topman decision. I could not subscribe to the argument the expenditure not really incurred should be allowed to arrive at the profit on sale of DEPB treating that the same is notionally incurred. Ultimately, the logic appears to be taken care of . At lease till the time the Apex Court decides otherway around..

[pawansingla]

I don't know whether Bombay High Court has discussed Liberty India. But if we read Liberty India carefully , then ratio of Topman exports was not sustainable. Even otherwise , the duty paid had not relation with the depb received.It is time for Bomaby Income tax Department to Act. In view of Jurisdictional High Court , Department can file 154 to CIT(A) if he has decided issue against the Department or Miscellaneous Application u/s 254(2) to the ITAT if it has followed the Topman. The other alternative and to bunch all apeals related to topman and get it dispose of by common order. The colection for the department will be huge in short time. But department officers has to take some pain.
Further , itis observed that during last one year , Bomaby High court has giving most of decisions in favour of the revenue.

[CA.BHUPENDRASHAH]

TRUE