TMI Blog2010 (2) TMI 948X X X X Extracts X X X X X X X X Extracts X X X X ..... cumstances of the case and as per law, the ld. CIT(A) has erred in deleting the addition of Rs. 13,86,364 made under section 92AC read with section 92C(3) of the Income-tax Act. 3. On the facts and in the circumstances of the case and as per law, the ld. CIT(A) has erred in directing the Assessing Officer, not to include sales tax and excise duty as part of the total turnover while computing the deduction allowable under section 80HHC. 4. On the facts and in the circumstances of the case and as per law, the ld. CIT(A) has erred in directing the Assessing Officer to treat the interest from customers, insurance claim and scrap sales as part of profits, of business for computing deduction under section 80HHC." 2. As regards ground No. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... per cent was ignored by the Assessing Officer. 6. Before us the learned Departmental Representative submitted that it is not clear that the difference of sale price is less than 5 per cent or more and therefore, it cannot be said that the relief was given because the difference was less than 5 per cent. 7. On the other hand, the learned counsel for the assessee submitted that the Assessing Officer has also not discussed the details properly and in any case, the amended provision regarding ignoring the difference of 5 per cent has not been followed. 8. We have considered the rival submissions carefully and find that both the Assessing Officer as well as the CIT(A), have not discussed the issue in detail. It is not clears whether ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rent, etc., do not form part of business profits as they have no nexus with the activity of export. The amendments made from time to time indicate that they became necessary in order to make the formula workable. If so, excise duty and sales tax also cannot form part of the "total turnover" under section 80HHC(3): otherwise the formula becomes unworkable." 11. Respectfully following the above decision, we decide this issue against the revenue. 12. As far as ground No. 4 is concerned, after hearing both the parties, we find that interest from customer is concerned, this issue came up for consideration before the Tribunal in assessment year 2001-02 in ITA No. 2773/Mum./2004 dated 8-7-2007, and the same was adjudicated vide para 5 of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Court in the case of CIT v. K. Ravindranathan Nair [2007] 295 ITR 228. 15. Lastly, as far as the issue of insurance claim is concerned, after hearing both the parties we find that the details have not been discussed by the lower authorities. If the insurance claim pertains to the revenue field, for example, loss of raw material, then definitely, the same would be eligible for deduction under section 80HHC. If the same is in the capital field, say, loss of machinery, then the same is not entitled for deduction. Therefore, we set aside the order of the learned CIT(A) and remit the matter back to the file of the Assessing Officer with direction to re-examine the same after determining the particulars of insurance claim and then decide ..... X X X X Extracts X X X X X X X X Extracts X X X X
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