TaxTMI 
TaxTMI 
2009 (12) TMI 411
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....al questions of law : "(1) Whether the Tribunal was correct in holding that the excise duty paid by the assessee on goods manufactured but not sold during the year and reflected as closing stock during the year is liable to be allowed as an expenditure during the current year itself ? (2) Whether the Tribunal was correct in holding that in view of section 43B of the Act the excise duty paid is liable to be allowed despite the clear mandate of the provision not being understood in the proper perspective ? (3) Whether the Tribunal was correct in holding that excise duty, sales tax and scrap sales are not includible in the total turnover for the purpose of deduction under sections 80HHC and 80HHE of the Act ?" 2. At the time of arg....
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.... by the assessee in regard to the amount realized from the sale of scrap and excise duty paid thereon, on the ground that, while computing deductions under sections 80HHC and 80HHE, the total turnover includes the value of the scrap sold by the assessee. The order of the Assessing Officer was questioned by the assessee by filing an appeal before the Commissioner of Income-tax (Appeals). The Commissioner of Income-tax (Appeals) affirmed the order of the Assessing Officer under sections 80HHC and 80HHE by his order dated March 24, 1998. Being aggrieved by the same, the assessee filed an appeal before the Income-tax Appellate Triunal. The Appellate Tribunal considering the same has granted relief to the assessee on the ground that the amount r....
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....ion as defined in the Customs Act, 1962. Relying upon the definitions of export turnover and total turnover as defined under section 80HHC (4C) Explanation (b) and (ba) of the Income-tax Act as under : "80HHC(4C). Explanation.- . . . (b) 'export turnover' means the sale proceeds received in, or brought into, India by the assessee in convertible foreign exchange in accordance with clause (a) of sub-section (2) of any goods or mer-chandise to which this section applies and which are exported out of India, but does not include freight or insurance attributable to the transport of the goods or merchandise beyond the customs station as defined in the Customs Act, 1962 (52 of 1962) ; (ba) 'total turnover' shall not include freight or ins....
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....essee cannot be taken into consideration since it is not an export sale. He further contends that the Madras High Court in CIT v. Madras Motors Ltd./M. M. Forgings Ltd. [2002] 257 ITR 60 has fairly held that for the purpose of computing section 80HHC, only the turnover relating to export business of the assessee shall be taken into account and not the turnover relating to the other business of the assessee. Relying upon these two decisions, he requests the court to answer the question of law against the Revenue and in favour of the assessee. 8. Having heard the counsel for the parties, we have to consider whether the value received by the assessee by selling scrap in a domestic market has to be included towards its total turnover w....