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2013 (2) TMI 597 - AT - Income TaxJurisdiction of CIT(A) – CIT(A), to confirm the order of AO, followed the judgement of High court and ignored the direction of Tribunal – Grievance of the assessee is that the CIT(A) was not justified in confirming the order of the AO and CIT(A) exceeded his jurisdiction in rejecting the claim of the assessee in respect of deduction u/s 80HHC on the value of DEPB - Held that:- Decision of the Tribunal was reversed by the Hon'ble Bombay High Court in the case of CIT v Kalpataru Colours and Chemicals[2010 (6) TMI 63 - BOMBAY HIGH COURT ] and thereafter even the Hon'ble Punjab & Haryana High Court in a number of cases which have been mentioned by the AO in its assessment order have held that the said decision of the Hon'ble Bombay High Court should be considered by the Hon'ble Chandigarh ITAT and its earlier decision has been set aside – Thus, under the circumstances, the action of the AO is justified. DEPB credit – As decided in Kalaptaru Colours & Chemicals, DEPB credit being an export incentive received by the assessee in proportion to the FOB value of its export has no face value and the amount received on its transfer is to be considered while computing the profits allowable for deduction under section 80HHC of the Act - Therefore no merit was found in the stand of the assessee that DEPB credit has a face value and while determining the profits eligible for deduction under section 80HHC of the Act, only the profits arising on the transfer of DEPB credit are to be excluded – However, the amount received by the assessee on the transfer of DEPB credit is includible as business profit in the hands of the assessee under section 28(iiid) of the Act – Appeal dismissed. Charging of interest u/s 234D – Assessee submitted that interest is not chargeable in re-assessment proceedings as held in the case of Dredging Corporation of India Ltd[2011 (7) TMI 584 - ITAT VISAKHAPATNAM] – Also submitted that interest u/s 234D is also not chargeable in order u/s 143(3) read with sect ion 254 of the Act, which is an order only to give effect to the Tribunal’s directions.
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