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2014 (7) TMI 218 - HC - Income TaxAdmission of appeal - Deduction u/s 80HHC of the Act – Sale of goods at counter in convertible foreign exchange – Held that:- The decision in Ram Babu and Sons vs. Union of India [1996 (5) TMI 61 - ALLAHABAD High Court] followed - the assessee was entitled to get the deductions u/s 80-HHC in respect of counter sales against foreign currency. Charge of interest – Held that:- The decision in Ranchi Club Ltd. vs. Commissioner of Income Tax and others [2000 (8) TMI 79 - SUPREME Court] - an order of the AO in the assessment order to charge interest has to be specific and clear - the assessee must know that the assessing officer after applying his mind had ordered charging of interest under a particular Section and that a general order directing that interest would be charged as per Rules or directing that charge interest as per Law was not a specific order for levying interest - If interest is leviable under Sections 234-A, 234-B or 234-C of the Act, then such levy of interest is mandatory and compensatory in nature - in order to levy interest under the Sections the AO is specifically required to mention the specific section of charging interest, failing which, no interest could be levied under those Sections - Penal proceedings are totally different and distinct from charging interest - it is not necessary nor obligatory for the AO to direct initiation of penal proceedings and that penal proceedings would be initiated without a specific direction from the AO – Decided against Revenue.
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