Omit Section 28(iiid) as DEPB Scheme no more in existence: ICAI

Issue/Justification

Section 28(iiid) provides that any profit on transfer of the Duty Entitlement Pass Book Scheme, being the Duty Remission Scheme under the export and import policy formulated and announced under section 5 of the Foreign Trade (Development and Regulation) Act, 1992 (22 of 1992) shall be chargeable to income-tax under the head “Profits and gains of business or profession”. However, the aforementioned DEPB scheme was abolished w.e.f 1.10.2011 vide Notification No. 51/2011–Customs, dated 22.06.2011.

Suggestion

It is suggested that sub section (iiid) to section 28 be omitted since the Duty Entitlement Pass Book Scheme was abolished w.e.f. 1.10.2011 vide Notification No. 51/2011 – Customs, dated 22.06.2011.

Source-  ICAI Pre-Budget Memorandum–2018 (Direct Taxes and International Tax)