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2006 (5) TMI 82 - HC - Income TaxInterpretation of the statute - Export Business - Exclusion of sales tax and excise duty from the total turnover for the purpose of the computation of deduction u/s 80HHC - HELD THAT:- The term "total turnover" used in section 80HHC of the Act needs to be interpreted vis-a-vis the definition of "export turnover" with reference to other definitions as given in various clauses of section 80HHC of the Act. The interpretation under the income-tax law needs to be contextual and should not be with reference to the interpretation given to it under the sales tax law. It is submitted by counsel for the assessee that the profits derived from such exports should be the amount, which has profit element in it. As already stated, while interpreting the word "total turnover", u/s 80HHC of the Act, different High Courts have taken a view in favour of the assessee. Thus, the interpretation involved in the present case is of a statute having application throughout the country, we do not find any good reason to differ from the views taken by six different High Courts on the issue. Accordingly, the substantial question of law raised in the appeal is answered against the Revenue and in favour of the assessee.
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