Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2005 (6) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2005 (6) TMI 252 - ITAT MADRAS-CDeductions u/s 80HHC - Conversion charges receipts - Export Profits - Whether conversion charges are part of total turnover for the purpose of computation of deduction u/s 80HHC - HELD THAT:- From the facts, it becomes clear that wherever there is a composite business and profits of export have to be included for the purpose of deduction under section 80HHC, then the formula given u/s 80HHC(3) has to be applied and whenever profit element from domestic turnover of specified or non-specified goods is included, then domestic turnover of such goods has to be included in the total turnover. In fact, it becomes clear from the two decisions rendered by the Hon'ble Madras High Court in case of Madras Motors Ltd.[2002 (3) TMI 10 - MADRAS HIGH COURT] and Sundaram Fasteners Ltd.[2004 (10) TMI 33 - MADRAS HIGH COURT], that it has been clearly laid down that wherever there is a domestic turnover and that involves element of profit, then such turnover is to be included in the total turnover for determining the proportionate export profit u/s 80HHC(3) for the purpose of allowing deduction u/s 80HHC(1). It is clear from the records that the assessee had generated profit on sale of cotton as well as sale of condemned material and it also generated profits from process charges which is included in the business profit and, therefore, these elements have to be included in the total turnover. In the result, the revenue's appeal is allowed and the Cross Objection of the assessee is rejected.
|