2002 (1) TMI 960

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....ection 143(3)/263, assessee was asked to explain why freight outward charges collected should not be excluded for calculating the deduction under section 80-I. The assessee submitted before the Assessing Officer that freight outward collected during the year relates to freight and insurance charges collected on sales effected to electricity board. The sale price was fixed by the Board after calling upon the tenders under its policy and such price was exclusive of excise duty, sales-tax and freight. Only basic rate is approved. The appellant company separately collects such excise duty, sales-tax freight and insurance which are part and parcel of the sale price. As it is the division of the sale price and the gross sale price is inclusive of....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....750 per equipment has been mentioned irrespective of the weight of such units. He then referred to pages 9 & 10 of the compilation which is the detail of freight outward expenses which shows that for assessment year 1990-91, assessee's total freight expenditure amounting of Rs. 91,210 and recovered freight amount to Rs. 2,07,525. Thus, a surplus of Rs. 1,16,315 arose on this account. He submitted that assessee was claiming benefit of section 80-I only against this surplus and not on the total amount. Though assessee is bound to supply the goods and freight charges incurred by it have been duly accounted for. Because of the policy of Electricity Board, the sale price has been bifurcated and this surplus on account of freight outward should b....