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2023 (1) TMI 369 - AT - Income TaxTurnover calculation - Taxing income of the appellant @ 30% instead of 25% is covered u/s 143(1) - adjustment made in the intimation u/s 143(1) and confirmed by the Ld. CIT(A) - HELD THAT:- As in the case of Punjab Stainless Steel Industries [2014 (5) TMI 238 - SUPREME COURT] while examining the meaning of turnover as occurring the Section 80HHC taking into consideration the guidance notes issued by Institute of Chartered Accountants of India, concluded that in normal accounting parlance ‘turnover’ would mean total sale proceeds of the goods in which the assessee is dealing. Therefore, the scrap sales would not form part of turnover unless an assessee is dealing in scrap. The turnover would be adjusted for goods returned, price adjustments, trade discount and cancellation of bills. However, adjustments which do not relate to turnover should not be made e.g. writing off bad debts, royalty etc. In view of the above judgment we hold that ‘Provisions for Doubtful Debts Write Back’ cannot be included in total turnover for the previous year 2016-17. On exclusion of the ‘Provisions for Doubtful Debts Write Back’ the total turnover of the Appellant for the previous year 2016-17 falls below of INR 250 Crores. In view of the aforesaid, we hold that the Appellant was correct in offering its income to tax at the rate of 25% in the return of income. Additional tax demand raised on the Appellant on account of computing income tax liability by adopting rate of 30% (instead of income tax rate of 25%) is deleted. Present appeal is allowed.
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