TMI Blog2014 (12) TMI 353X X X X Extracts X X X X X X X X Extracts X X X X ..... to give a schematic interpretation and the various amendments made therein show that receipts by way of brokerage, commission, interest, rent, etc. do not form part of business profits, as they have no nexus with the activity of export, and therefore, excise duty and sales tax also cannot form part of the "total turnover" u/s 80HHC(3) – thus, the amounts towards sales tax and the excise duty cannot be included in the total turnover – thus, the Tribunal committed no error in directing the AO to exclude sales tax and excise duty from the total turnover – Decided against revenue. - TAX APPEAL NO. 57 of 2006 With TAX APPEAL NO. 915 of 2006 - - - Dated:- 13-11-2014 - MR. KS JHAVERI AND MR. K.J.THAKER, JJ. MR KM PARIKH, ADVOCATE FOR THE ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ircumstances of the case and in law, the Appellate Tribunal was right in upholding the order of the CIT(A) directing to exclude sales-tax and excise duty while computing total turnover for the purpose of deduction u/s. 80HHC of the I.T. Act? 3. So far as Tax Appeal No. 915 of 2006 is concerned, the facts in brief are that the respondent-assessee, therein, filed its return of income for the A.Y. 1996-97 on 30.10.1996. However, the AO found that the assessee had not included the amount of sales tax amounting to RS.45,12,006/- and excise duty ₹ 14,32,560/- in total turnover. Pursuant thereto, the AO reduced the claim of the assessee for deduction under Section 80HHC of the Income Tax Act, 1961 (for short, 'the Act'). Being ag ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . CIT , 97 ITR 615 (SC). 5. As against this learned Counsel for the respondent assessee supported the order of the Tribunal and submitted that the Tribunal, in view of the latest decision of the Apex Court as well as of this Court, rightly come to the conclusion that the sales tax and excise duty shall not form the part of total turnover. 6. Heard learned counsels for the parties and perused the material on record, including the orders of the learned CIT(A) as well as the Tribunal. The issue involved in this appeal is not res integra and the same has been answered in favour of the assessee and against the revenue by the Apex Court in COMMISSIONER OF INCOME TAX VS. LAKSHMI MACHINE WORKS , [2007] 290 ITR 667(SC). In that case, the Apex ..... X X X X Extracts X X X X X X X X Extracts X X X X
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