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2014 (1) TMI 813 - HC - Income TaxWhether excise duty be included in total turnover for the purpose of Section 80HHC - Held that:- Following Commissioner of IncomeTax vs. Lakshmi Machine Works [2007 (4) TMI 202 - SUPREME Court] - Under Section 2(24) of the Act the word "income" includes profits and gains - The charge is not on gross receipts but on profits and gains - Gross receipts or sale proceeds, however, include profits - Such profits have to be got to be ascertained on ordinary principles of commercial trading and accounting - Profits should be computed after deducting the expenses incurred for business though such expenses may not be admissible expressly under the Act, unless such expenses are expressly disallowed by the Act - Therefore, schematic interpretation for making the formula in Section 80HHC workable cannot be ruled out. Just as interest, commission etc. did not emanate from the "turnover", so also excise duty and sales tax did not emanate from such turnover - Since excise duty and sales tax did not involve any such turnover, such taxes had to be excluded - Excise duty and sales tax are indirect taxes. They are recovered by the assessee on behalf of the Government - Decided against Revenue.
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