2010 (2) TMI 948

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....s. 2. On the facts and in the circumstances of the case and as per law, the ld. CIT(A) has erred in deleting the addition of Rs. 13,86,364 made under section 92AC read with section 92C(3) of the Income-tax Act. 3. On the facts and in the circumstances of the case and as per law, the ld. CIT(A) has erred in directing the Assessing Officer, not to include sales tax and excise duty as part of the total turnover while computing the deduction allowable under section 80HHC. 4. On the facts and in the circumstances of the case and as per law, the ld. CIT(A) has erred in directing the Assessing Officer to treat the interest from customers, insurance claim and scrap sales as part of profits, of business for computing deduction under section....

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....sideration of difference of 5 per cent was ignored by the Assessing Officer. 6. Before us the learned Departmental Representative submitted that it is not clear that the difference of sale price is less than 5 per cent or more and therefore, it cannot be said that the relief was given because the difference was less than 5 per cent. 7. On the other hand, the learned counsel for the assessee submitted that the Assessing Officer has also not discussed the details properly and in any case, the amended provision regarding ignoring the difference of 5 per cent has not been followed. 8. We have considered the rival submissions carefully and find that both the Assessing Officer as well as the CIT(A), have not discussed the issue in detail....

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....commission, interest, rent, etc., do not form part of business profits as they have no nexus with the activity of export. The amendments made from time to time indicate that they became necessary in order to make the formula workable. If so, excise duty and sales tax also cannot form part of the "total turnover" under section 80HHC(3): otherwise the formula becomes unworkable." 11. Respectfully following the above decision, we decide this issue against the revenue. 12. As far as ground No. 4 is concerned, after hearing both the parties, we find that interest from customer is concerned, this issue came up for consideration before the Tribunal in assessment year 2001-02 in ITA No. 2773/Mum./2004 dated 8-7-2007, and the same was adjudica....