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2010 (9) TMI 92 - ALLAHABAD HIGH COURTDeduction under Section 80HHC of the I.T. Act - excise duty is to be included in the total turnover for the purpose of computation of deduction u/s 80HHC of the I.T. Act - total turnover" in Section 80HHC as part of the formula which sought to segregate the "export profits" from the "business profits - entire business profits is not given deduction - Goods for export do not incur excise duty liability - they were not eligible for deduction under Section 80HHC - Section 80HHC deduction was "business profits" as computed under Section 28, a portion of which had to be apportioned in terms of the above ratio of export turnover to total turnover. Section 80HHC(3) was a beneficial section – Held that: - Apportionment of profits on the basis of turnover was accepted as a method of arriving at export profits. This method earlier existed under Excess Profits Tax Act, it existed in the Business Profits Tax Act. Therefore, just as commission received by an assessee is relatable to exports and yet it cannot form part of "turnover", excise duty and sales tax also cannot form part of the "turnover" – Case is in favour of assessee.
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