TMI Blog2015 (1) TMI 1158X X X X Extracts X X X X X X X X Extracts X X X X ..... ived 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 - Tax Appeal No. 679 of 2007, Tax Appeal No. 694 of 2007, Tax Appeal No. 696 of 20 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in the circumstances of the case, the ITAT was right in holding that sum relatable to sales tax and excise duty do not form part of the total turnover for the purpose of computing profits derived from export for claiming benefit under Section 80HHC of the Income Tax Act, 1961? 3. The facts in brief in the above Appeals are that:- In Tax Appeal No.679/2007 The Assessing Officer while framing assessment included the amount of Sales Tax and Excise duties as being a part of total turnover for the purpose of deductions u/s. 80HHC of the Income Tax Act. The Commissioner (Appeals) as well as the Appellate Tribunal directed to delete the same from the total turnover relying upon the decision in the case of the other assessee. In Tax A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed to show cause why the excise duty and sales tax may not be taken as part of total turnover of business in view of the recent decision of the ITAT, Ahmedabad Bench in the case of Gujarat Fluro Chemicals Ltd., for assessment year 1996-97 vide ITA No.231/Ahd/2000 dated 24.08.2000 as well as in view of the decision of the Supreme Court in the case of Chowringhee Sales Bureau, 87 ITR 542, Sinclaire Murray Co. 97 ITR 615 (SC) and the decision of the Gujarat High Court in the case of Navjivan Udyog Mandir Pvt. Ltd. vs. CIT (207 ITR 40). In this connection, the assessee submitted that had adopted the total turnover of ₹ 24,84,55,717/- as per form No.10CCAC excluding sales-tax and excise duty. It also relied on the decision of the Bombay ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s 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). The Court further observed that the principal reasons for enacting a formula in section 80HHC of the Income-Tax Act, 1961 is to disallow a part of the concession thereunder when the entire deduction claimed cannot be re ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
