TMI Blog2007 (6) TMI 150X X X X Extracts X X X X X X X X Extracts X X X X ..... t the order of the Income Tax Appellate Tribunal, Chennai Bench "C" in I.T.A. No.1565/Mds/2004 dated 21.04.2006 for the assessment year 1999-2000, raising the following substantial questions of law: "1. Whether in the facts and circumstances of the case, the Tribunal was right in holding that excise duty and sales tax do not form part of the turnover, for the purpose of calculation of deduction u/s 80HHC? 2. Whether in the facts and circumstances of the case, the Tribunal was right in holding that additional liability on account of purchase of plant and machinery, which arose due exchange fluctuation has to be treated as revenue expenditure? 2. T.C.(A) Nos.830 and 831 of 2007 are filed under Section 260A of the Income-tax Act, 1961, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... xpenditure. The Assessing Officer disallowed the same and treated the additional liability as capital expenditure. Aggrieved by the orders, the assessee filed appeals before the Commissioner of Income-tax (Appeals). The C.I.T.(A) held that the excise duty, sales tax and conversion charges are not includible in the total turnover for the purpose of Section 80HHC of the Act. Further, the C.I.T.(A) held that the additional liability on account of plant and machinery which arose due to exchange fluctuation has to be treated as revenue expenditure. Aggrieved, the Revenue filed appeals to the Income-tax Appellate Tribunal ("Tribunal" in short). The Tribunal dismissed the appeals and confirmed the orders of the C.I.T.(A). Hence the present ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he issue in favour of the assessee for the earlier assessment years, by relying on this Court judgment reported in 149 ITR 716 in the case of Lakshmi Card Clothing Mfg. Co. Pvt. Ltd. Vs. Commissioner of Income-tax, Tamil Nadu-V, Madras. The Revenue is unable to bring to our notice any compelling reason to take a different view and also there is no detail as to whether the Revenue has preferred any appeal against the earlier Tribunal orders or not. In view of the same, we do not find any error or legal infirmity in the orders of the Tribunal so as to warrant interference. Under the circumstances, no substantial questions of law arise for consideration of this Court in respect of Question No.2 in both the tax cases. 7. In the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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