TMI Blog2001 (12) TMI 4X X X X Extracts X X X X X X X X Extracts X X X X ..... e assessee and the Tribunal is right in law in excluding the two amounts from the total turnover for the purpose of computing the deduction under section 80HHC of the Income-tax Act? - 2. Whether, in view of Explanation (ba) to section 80HHC and clauses (iiia), (iiib) and (iiic) of section 28, will not turnover take into account all other receipts other than the excluded items of receipts?" - The ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... o export business from total profit computed under the provisions of the Act. In this regard, while computing the total turnover, the Assessing Officer included therein Rs. 10,045 and Rs. 1,17,483 towards claim for bad quality of raw nuts purchased. According to the assessee, these two amounts though they form part of the income, do not constitute turnover. However, the Assessing Officer rejected ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he facts and in the circumstances of the case, and in view of Explanation (ba) to section 80HHC and clauses (iiia), (iiib) and (iiic) of section 28, will not turnover take into account all other receipts other than the excluded items of receipts?" At the time of hearing, senior counsel for the Department contended that even though the items constitute income, they form part of turnover as well. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... view, because the purpose of the formula provided under section 80HHC is to find out the profit attributable to export turnover, that is the profit on export sales. Moreover, the business income is only reckoned for the purpose of computation of eligible deduction and the business income in the context of total turnover is only the income generated on purchases and sales. Therefore, the total turn ..... X X X X Extracts X X X X X X X X Extracts X X X X
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