TMI Blog1993 (2) TMI 144X X X X Extracts X X X X X X X X Extracts X X X X ..... a report from the Chartered Accountants on Form No. 10CCAC. In that report Chartered Accountants reported that the total turnover of the assessee's business was Rs. 4,10,37,459 which was the total export turnover also. A sum of Rs. 6,62,74,581 was shown as amount of profit under the head "profits and Gains of Business or Profession". Deduction under s. 80HHC in which the assessee was entitled, was also worked out at Rs. 6,62,74,581. In the profit and loss account the assessee had shown export fees of Rs. 7,49,77,200. The Assessing Officer while making prime facie disallowance restricted the claim of the assessee under s. 80HHC to Rs. 2,30,98,470 as per details placed at page 9 of the assessee's compilation. This figure was arrived at by mu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e case of Tanna Exports Anr. vs. Asstt. CIT (1992) 108 CTR (Bom) 213, it was submitted that recalculation of adjustment under s. 80HHC was not permissible under s. 143(1)(a) of the Act. It was vehemently argued that the learned CIT(A) had committed an error in the impugned order by considering as to what the "total turnover" in the assessee's case meant. It was submitted that Finance (No. 2) Act, 1991 with retrospective effect from1st April, 1987had only negatived the term defined "total turnover". According to im, there was no positive definition of "turnover" as such. Expln. (ba) to s. 80HHC simply stated that freight or insurance attributable to the transport of the goods or merchandise beyond the customs station shall not be included ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... neous. 4. The learned Departmental Representative, on the other hand, submitted that export fee was undisputedly a revenue receipt in the hands of the assessee itself. According to him, Finance (No. 2) Act, 1991 had brought about a fundamental change in the concept of "total turnover". According to the learned Departmental Representative, the matter was quite simple and the total turnover included all revenue receipts except freight or insurance attributable to the transport of the goods or merchandise beyond the customs station. It was also submitted that since the figure of total turnover was available on the record and was clear from the documents and papers accompanying the return of income, the Assessing Officer was justified in maki ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Khatau Junkar Ltd. Anr. also lays down that all debatable issues are outside the ambit of prima facie adjustments under s. 143(1)(a) of the Act. In the light of the Bombay High Court decision in the case of Tanna Exports Anr., recalculation of adjustment under s. 80HHC is not permissible under s. 143(1)(a) of the Act. This is a direct authority in favour of the assessee's contention. Finance (No. 2) Act, 1991 has not defined "total turnover" in positive terms. It has merely defined "total turnover", negatively so as not to include such items like freight and insurance. The definition of "turnover" as such, however, is not available in the IT Act. This term has therefore, to be understood as in common parlance. For asst. yr. 1989-90 the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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