TMI Blog2015 (3) TMI 405X X X X Extracts X X X X X X X X Extracts X X X X ..... w than the view normally taken by the persons who are concerned with the said term. - Decided in favour of assessee. - T.C.A. NO. 541 OF 2008 - - - Dated:- 4-3-2015 - R. Sudhakar And S. Vimala,JJ. For the Appellant : Mr. R. Venkatanarayanan for M/s. Subbaraya Aiyar Padmanabhan For the Respondents : Mr. T. R. Senthil Kumar JUDGMENT (Delivered By R. Sudhakar, J.) Aggrieved by the order of the Tribunal in allowing the appeal filed by the Revenue, the assessee is before this Court by filing the present appeal. 2. This Court, vide common order dated 3.7.08, the following substantial question of law has been framed in both the appeals, viz., TCA Nos.541 and 542/08 :- Whether on the facts and in the circumstances of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nover. 5. Aggrieved against the said assessment, the appellant preferred appeal to the CIT (Appeals). On consideration of the submissions as made by the assessee, following the Tribunal's order for the earlier years, the CIT (Appeals) held that scrap should not be excluded from the profits of the business and also scrap sales should not be included in the total turnover for the purpose of computing deduction u/s 80HHC and, thereby, allowed in part the appeal filed by the appellant/assessee. 6. The Revenue, aggrieved by the said order, preferred appeal to the Tribunal, while the assessee did not choose to prefer any appeal. The Tribunal, on the second ground raised before it, passed the following order :- 5. As regards the seco ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section 80HHC of the Act for the relevant assessment year, the assessee was not including the sale proceeds of scrap in the total turnover but was showing the same separately in the profit and loss account. 8. According to the Revenue, the sale proceeds from the scrap should have been included in the total turnover as the respondent-assessee was also selling scrap and that was also part of the sale proceeds. 9. Insofar as the scope of the provision, viz., Section 80HHC, the same was dealt with by the Supreme Court in para-10 of the said judgment, wherein it was held as follows :- 10. One can very well see that if the total turnover increases, the advantage which the assessee would get under section 80HHC would decrease because ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e in our country. If the purpose is to bring more foreign exchange and to encourage export, we are of the view that the Legislature would surely like to give more benefit to persons who are making an effort to help our nation in the process of bringing more foreign exchange. If a trader or a manufacturer is trying his best to increase his exports, even at the cost of his business in a local market, we are sure that the Government would like to encourage such a person. In our opinion, once the Government decides to give some benefit to someone who is helping the nation in bringing foreign exchange, the Revenue should also make all possible efforts to encourage such traders or manufacturers by giving such business units more benefits as conte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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