TMI Blog2006 (2) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... - T.C. (A) Nos. 60 & 65 of 2006 - - - Dated:- 7-2-2006 - JUDGMENT The judgment of the court was delivered by P. D. DINAKARAN J.— The above tax case appeals are directed against the common order of the Tribunal in I. T. A. Nos. -1042 and 1044/Mad/1998, dated June 16, 2004. 2 The Revenue is the appellant. The assessee is a manufacturer of pistons for heavy commercial vehicles. During ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... y and customs duty on closing stock not to be included in the total turnover while computing the deduction under section 80HHC of the Income-tax Act, 1961? 2. Whether, on the facts and in the circumstances of the case, the Tribunal was right in law in deleting disallow made under section 40(a)(i) in respect of interest on foreign bills is valid ?" 4 In respect of question No. I viz., excise ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... stock. 5 In view of the ratio laid down by this court in the decision cited supra, we hold that the excise duty and customs duty on closing stock are not to be included in the total turnover, while computing the income under section 80HHC of the Act. 6 As far as the second question is concerned, it is not in dispute that the assessee claimed deduction in respect of interest on foreign bill ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... with reference to loan so that the requirement of tax deduction at source would have been attracted, no disallowance under section 40(a)(i) can be made. Section 40(a)(i) reads as follows : "40. Notwithstanding anything to the contrary in sections 30 to 38, the following amounts shall not be deducted in computing the income chargeable under the head 'Profits and gains of business or profession',— ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... duction of tax at source is not attracted and as such, we find that the directions of the Commissioner of Income-tax (Appeals) as well as the Tribunal are strictly in compliance with section 40(a)(i) of the Act, which requires no interference. 9 In view of the foregoing conclusion, we find no error or illegality in the order of the Tribunal and the same requires no interference. Hence, no subs ..... X X X X Extracts X X X X X X X X Extracts X X X X
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