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TMI Blog2021 (8) TMI 676X X X X Extracts X X X X X X X X Extracts X X X X ..... .A.No.2400/Mds/2014 for the assessment year 2007-2008. 2.The appeal was admitted on 04.01.2016 on the following substantial question of law: "Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that the scrap sales had to be excluded from the total turnover as well as the export turnover while computing the exemption under Section 10B?" 3.We have heard Mr.J.Narayanasamy, learned senior standing counsel appearing for the appellant/revenue and Mr.Srinath Sridevan, learned counsel assisted by M/s.Jyotsna Sivakumar, learned counsel appearing for the respondent/assessee. 4.The short question involved in the instant case is as how to compute the total turnover while considering the claim for exemptio ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Hon'ble Supreme Court in the case of Commissioner of Income Tax-VII, New Delhi vs. Punjab Stainless Steel Industries [(2014) 46 Taxman 68 (SC)] considered this issue and held as follows: "17.To ascertain whether the turnover would also include sale proceeds from scrap, one has to know the meaning of the term 'turnover'. The term 'turnover' has neither been defined in the Act nor has been explained by any of the CBDT circulars. 18.In the aforestated circumstances, one has to look at the meaning of the term 'turnover' in ordinary accounting or commercial parlance. 19.Normally, the term 'turnover' would show the sale effected by a business unit. It may happen that in the course of the business, in addition to the normal sales, the bu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... declare his 'turnover', the answer given by him would show the sale proceeds of air-conditioners during a particular accounting year. He would not include the amount received, if any, from the sale of scrap of metal pieces or sale proceeds of old or useless things sold during that accounting year. This clearly denotes that ordinarily a businessman by word "turnover" would mean the sale proceeds of the goods (the things in which he is dealing) sold by him. 22.So far as the scrap is concerned, the sale proceeds from the scrap may either be shown separately in the Profit and Loss Account or may be deducted from the amount spent by the manufacturing unit on the raw material, which is steel in the case of the respondent-assessee, as the respon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... refer to dictionaries or to materials which are published by bodies of Accountants. The Institute of Chartered Accountants of India ( hereinafter referred to as the 'ICAI') has published some material under the head "Guidance Note on Tax Audit Under Section 44AB of the Income Tax Act". The said material has been published so as to guide the members of the ICAI. In our opinion, when a recognized body of Accountants, after due deliberation and consideration publishes certain material for its members, one can rely upon the same. Para 5 of the said Note deals with "Sales", "turnover" and "gross receipts". Paras 5.2 and 5.3 of the said Note are reproduced hereinbelow, which pertain to the term "turnover". "5.2 In the "Guidance Note on Terms ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... from the cost of raw material or is to be shown separately under a different head. We do not see any reason for not accepting the meaning of the term "turnover" given by a body of Accountants, which is having a statutory recognition. 26.If all accountants, auditors, businessmen, manufacturers etc. are normally interpreting the term 'turnover' as sale proceeds of the commodity in which the business unit is dealing, we see no reason to take a different view than the view normally taken by the persons who are concerned with the said term." 7.Thus, by taking note of the above legal position as well as the findings recorded by the Tribunal we find that there is no error in the conclusion arrived at by the Tribunal. 8.For the reasons stated a ..... X X X X Extracts X X X X X X X X Extracts X X X X
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