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2016 (8) TMI 259 - HC - Income TaxReduction of the amount of excise duty and sales tax while computing the total turnover for the purpose of deduction under section 80-HHC - Held that:- Tribunal has not committed any error in holding that the components of sales tax and central excise do not form part of sale proceeds for the purpose of Section 80HHC of the Act despite insertion of Section 145 A of the Act See Lakshmi Machine Works (2007 (4) TMI 202 - SUPREME Court ) and Shiva Tex Yarn Ltd. [2012 (9) TMI 658 - SUPREME COURT ] Allowance of trial run expenses - expenses incurred before the commencement of commercial production - revenue or capital - Held that:- The expense was incurred by the assessee for trial run with regard to expansion of present unit, to increase its installed capacity. Therefore the question posed for our consideration is required to be answered in favour of the assessee and against the revenue. Accordingly, it is held that the Tribunal has committed an error in treating the trial run expenditure incurred by the appellant in the process of expansion of its existing manufacturing facilities as capital expenditure. See BELL CERAMICS LTD. Versus DEPUTY COMMISSIONER OF INCOME TAX [2016 (8) TMI 202 - GUJARAT HIGH COURT]
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