TMI Blog2000 (3) TMI 1086X X X X Extracts X X X X X X X X Extracts X X X X ..... right in excluding the insurance claim of ₹ 11,97,400 from the total turnover while computing the deduction under section 80HHC. 2. The Assessing Officer while computing the deduction noticed that the assessee had received the aforesaid sum from the United Indian Insurance Co. Ltd. on account of loss of goods in fire which occurred in the factory of its sister-concern to which the as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... cribes a formula for determining export profits, which are fully exempt from income-tax. The formula, which is given above, contains 3 components. As regards profits gains of business and Export turnover , there is no dispute. The dispute is with reference to total turnover . Explanation (ba) below sub-section (4B) of section 80HHC explains total turnover as under : total turnover s ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the facilities he provides, into money. This involves the idea of quid pro quo as consideration for parting with goods or rendering the services or providing the facilities. This idea is the very basis of a business, the raison d etre . When he stores goods in a place belonging to a sister-concern, and due to fire they got destroyed and he receives money from the insurers, he does not turnover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t to view it as anything resembling turnover . The word total preceding the word turnover does not take the case further is used only to denote the aggregate and is not descriptive of the items of receipts that may properly fall to be considered as turnover . 6. There is one other angle from which the question may be viewed. The section exempts export profits. The formula has therefore ..... X X X X Extracts X X X X X X X X Extracts X X X X
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