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2012 (9) TMI 68 - HC - Income TaxInclusion of unrealized export turnover in the "Total Turnover" while it is not treated as "Export Turnover" for purposes of computing the allowable deduction u/s 80HHC - Held that:- Even if the unrealised sale proceeds is deducted as proportionate to the business profit and the total turnover the result would be the same when deduction under Section 80HHC is computed by reducing the export turnover by unrealised portion of export turnover, thus the contention of the assessee that unrealised portion should be deducted from the total turnover as well as from the export turnover would be contrary to the provisions of the Act. As the assessee had total turnover of Rs.1,01,20,167. Going by the definition of the "export turnover" meaning thereby the sale proceeds received in or brought into India by the asessee , necessarily the same has to be the assessee's actual receipt of sale proceeds i.e export turnover of Rs.91,20,802/-. Taking the actual foreign exchange received excluding a sum of Rs.9,26,324/- alone would represent the export turnover of the assessee. Going by the reasoning of this court and the definiton of "export turnover" no hesitation in confirming the order of the Tribunal - the computation of profits of the business is one thing and the computation of export turnover as defined in Section 80HHC Explanation (b), has to be in respect of sale proceeds received or brought in India in convertible foreign exchange and in contrast to this the total turnover as observed by this Court has to be in respect of the goods which are exported out of India - against assessee. Direction to consider the assessee's plea for allowance of the claim for bad debt since the foreign buyer refused to remit the sale proceeds for the exported goods and the Indian Embassy in Paris also informed the difficulties in realising the same.
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