TaxTMI 
TaxTMI 
2007 (6) TMI 256
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....ency should be excluded from the total turnover for the purpose of section 10A of the Income-tax Act, 1961. 3. On this issue, the assessee had claimed that the expenditure incurred by the assessee in foreign exchange for the services provided outside India should be excluded from the export turnover as well as the total turnover for the purposes of computation of deduction under section 10A of the Income-tax Act. However, the Assessing Officer referred to the definition of the export turnover given in section 10A and deducted the said expenditure from the export turnover and not from the total turnover. 4. Upon the assessee' s appeal, the learned Commissioner of Income-tax (Appeals) held that though the total turnover is not defined u....
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....espect of profits from export of computer software, etc., defines "export turnover" on similar lines as section 10A as under in Explanation (c) : "Export turnover means the consideration in respect of computer software received in, or brought into India by the assessee in convertible foreign exchange in accordance with sub-section (2), but does not include freight, telecommunication charges or insurance attributable to the delivery of the computer software outside India or expenses, if any, incurred in foreign exchange in providing the technical services outside India." It further defines "total turnover" in Explanation (e) as : "total turnover' shall not include- (i) any sum referred to in clauses (iiia), (iiib) and (iiic) of s....
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.... not involve any such turnover such taxes had to be excluded. Commission, interest, rent, etc., do yield profits, but they do not partake of the character of turnover and therefore they are not includible in the 'total turnover' . If so, excise duty and sales tax also cannot form part of the 'total turnover' under section 80HHC(3). One cannot interpret the words 'total turnover' with reference to the definition of the word 'turnover' in other laws like the central sales tax or as defined in accounting principles. Excise duty and sales tax are indirect taxes. They are recovered by the assessee on behalf of the Government." 10. The honourable apex court further held that "The principal reason for enactin....