AAMIR KHATRI ,MUMBAI vs. DCIT-17(1), MUMBAI

ITA 3586/MUM/2025Status: DisposedITAT Mumbai19 December 2025AY 2012-13Bench: SHRI ANIKESH BANERJEE (Judicial Member), SHRI PRABHASH SHANKAR (Accountant Member)1 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that DEPB income is intrinsically linked to export activity and should not be artificially segregated for gross profit computation. The addition made by excluding DEPB income from turnover was deemed unjustified.

What were the facts?

The assessee's assessment order was revised under Section 263, leading to a higher addition by excluding DEPB income from turnover for gross profit calculation. The assessee argued that DEPB income is part of export business and should be included in gross profit.

What were the issues?

Whether DEPB income is operating income and part of export business turnover for gross profit calculation, and if the revision under Section 263 was justified.

Which sections of the Income-tax Act were involved?

Section 263,Section 143(3),Section 28

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Before: SHRI ANIKESH BANERJEE & SHRI PRABHASH SHANKAR

Hearing: 04/12/2025

Per : Shri Anikesh Banerjee, JM: The instant appeal of the assessee filed against the order of the National Faceless Appeal Centre (NFAC), Delhi [hereinafter called, ‘Ld.CIT(A)] passed under section 250 of the Income-tax Act, 1961 (in short, ‘the Act’) for Assessment Year 2012-13, date of order 25/03/2025. The impugned order emanated from the order of the Learned Assistant Commissioner of Income- tax – 21(1), Mumbai (for brevity, the “Ld. AO”), order passed under section 143(3) read with section 263 of the Act, date of order 21/08/2017. 2. The assessee has taken the following grounds:-

2 Aamir Khat

The order continues below.

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