9911796707
TMI Blog2012 (9) TMI 90X X X X Extracts X X X X X X X X Extracts X X X X ..... I H.L. KARWA, AND SHRI T.R. SOOD, JJ. Appellant By : Shri Sudhir Sehgal Respondent By : Shri S.K. Mittal ORDER PER H.L.KARWA, VP This appeal filed by the assessee is directed against the order of CIT(A) -I, Ludhiana dated 01.02.2012 relating to assessment year 2002-03. 2. In this appeal, the assessee has taken the following grounds: - 1. That the learned CIT(A) has erred in upholding the order of the Assessing Officer by disallowing deduct ion u/s 80HHC on export incentives being DEPB and DFRC. 2. That the learned CIT (A) has erred on facts and in law in making an addition of Rs.1,21,99,519/ -(7794045 on account of 80HHC and 4405484,on account of 80- IB) by making recomputation of deduction u/s 80HHCand 80-IB, which ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y specified sub-section and not under clause (iv) of or clause (iiid) or similar of that clauses. Similarly, amendments have been brought in section 80HHC and these receipts have been brought at par with receipt earlier dealt in clauses (iiia), (iiib) (iiic) of Section 28. 8. For the purpose of claiming deduction u/s 80HC, the amendments have been made in section 80HHC itself and in section 28 of the Act. The first part of the amendment is by way of insertion of clauses (iiid) and (iiie) in section 28 of the Act. The clauses are inserted and deemed to have been inserted w.e.f. 1st April, 1998 and 1st April, 2001 respectively. Effected of these insertion are that the- (a) Profit on transfer of the Duty Entitlement Pass Book Scheme an ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... an opt ion to choose either the Duty Drawback or DEWPB Scheme, being Duty Remission Scheme. ii) The rate of Drawback credit attributable to the Custom Duty was higher than the rate of credit allowable under the DEPB Scheme being Duty Remission Scheme. The similar condition prevails in case of DFRC. The Explanation is inserted under third proviso to section 80HHC(3) providing that of the purposes of thee clauses, the rate of credit allowable means the rate of credit allowable under the DFRC, being Duty Remission. 11. The export turnover in the case of the assessee is Rs. 13,28,47,636/ - which is more than Rs. 10 Crores. The assessee has not filed any evidence to show that the conditions laid down in provision to sect ion 80HHC (3) inse ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ctional High Court in the case of M/s Liberty India Ltd. Vs. CIT which has been later upheld by Hon'ble Apex Court as well. The deduction u/s 80IB was reworked at Rs. 32,74,265/ - as against original claim of Rs. 76,79,750/ -. The AR during the course of appellate proceedings as well as assessment proceedings merely relied upon the claim that such reworking of claim of deduct ion was not permissible in an assessment made u/s 153A/153C. The arguments of AR on this issue have been adjudicated and the claim has been rejected. As such the reworking of claim of deduct ion u/s 80HHC and Sect ion 80IB, being strictly in accordance with the provisions of law, is upheld. 6. We have heard Shri Sudhir Sehgal, Ld. Counsel for the assessee and Shri S ..... X X X X Extracts X X X X X X X X Extracts X X X X
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