https://www.taxtmi.com/caselaws?id=6557 The SC held that excise duty and sales tax cannot be included in "total turnover" for computing deduction under section 80HHC(3). The Court applied purposeful interpretation, noting that the provision aims to segregate export profits from business profits through a formula-based approach. Since excise duty and sales tax are indirect taxes recovered on behalf of the government and lack turnover elements, their inclusion would render the statutory formula unworkable. The Court emphasized that only items involving actual turnover should be considered, excluding commission, interest, and similar receipts despite appearing in profit and loss accounts. The appeals filed by the revenue department were dismissed. en-us Wed, 25 Apr 2007 00:00:00 +0530 Wed, 11 Jun 2025 12:54:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6557 The SC held that excise duty and sales tax cannot be included in "total turnover" for computing deduction under section 80HHC(3). The Court applied purposeful interpretation, noting that the provision aims to segregate export profits from business profits through a formula-based approach. Since excise duty and sales tax are indirect taxes recovered on behalf of the government and lack turnover elements, their inclusion would render the statutory formula unworkable. The Court emphasized that only items involving actual turnover should be considered, excluding commission, interest, and similar receipts despite appearing in profit and loss accounts. The appeals filed by the revenue department were dismissed. Case-Laws Income Tax Wed, 25 Apr 2007 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6557