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2015 (1) TMI 1158 - HC - Income TaxDeduction under section 80HHC - Appellate Tribunal held that the amount of Sales Tax and Excise duties do not form a part of total turnover for the purpose of calculating deduction - Held that:- Issues squarely covered by the decision of Commissioner of Income Tax v. Lakshmi Machine Works [2007 (4) TMI 202 - SUPREME Court] wherein while deciding the issue in favour of the assessee the Honourable Supreme Court has observed that Section 80HHC of the Income-Tax Act, 1961 is a beneficial section: it was intended to provide incentive to promote exports. The intention was to exempt profits relatable to exports. Just as commission received by the assessee is relatable to exports and yet it cannot form part of "turnover" for the purposes of section 80HHC, excise duty and sales tax also cannot form part of "turnover". Just as interest, commission, etc. do not emanate from such turnover. Since excise duty and sales tax did not involve any such turnover such taxes are however to be excluded. Commission, interest, rent, etc. do yield profits, but they do not partake of the character of turnover and therefore they are not includible in the "total turnover". If so, excise duty and sales tax also cannot form part of the "total turnover" under section 80HHC(3). - Decided in favour of the Assessee
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