2015 (1) TMI 1158

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....03 696/2007 1741/Ahd/2005 2001-02 2. While admitting the Appeals, the following substantial questions of law arose for consideration:- In Tax Appeal No.679/2007 "Whether on the facts and circumstances of the case, the Appellate Tribunal was right in law in holding that the amount of Sales Tax and Excise duties do not form a part of total turnover for the purpose of calculating deduction under Section 80HHC of the Income Tax Act, 1961?" In Tax Appeal No.694/2007 "Whether on the facts and circumstances of the case and in law, ITAT was right in law in holding that sums relatable to excise duty do not form part of the total turn over for the purpose of computing profits derived from export for claiming benefit u/s.80HHC ....

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....ordingly a revised working of deduction u/s. 80HHC of the Act was made according to which the deduction came to Rs. 7,24,585/- which was allowed in the assessment. In Tax Appeal No.696/2007 The assessee is a private limited company engaged in the manufacturing and trading of various Industrial Valves, safety relief valves, butterfly valves, color port gauges etc. The assessee as per its nature of income filed had claimed deduction under section 80HHC of the Act at Rs. 41,99,799/- as per the computation of total income furnished alongwith the return of income. The assessee filed a Chartered Accountant Certificate in Form No.10CCAc alongwith the return of income. As per the said certificate the total turnover of the business was take....

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....ral Excise and Sales Tax. 4. All the issues are squarely covered by the decision of the Supreme Court in the case of Commissioner of Income Tax v. Lakshmi Machine Works reported in [2007] 290 Income Tax Reports 667 and the decision of this Court in Tax Appeal No.1321/2005 (Coram : K.A. Puj, J. and R.H. Shukla, J.). Relevant part of the decision of this Court reads as under:- "3. While deciding the issue in favour of the assessee and against the Revenue, the Honourable Supreme Court has observed that Section 80HHC of the Income-Tax Act, 1961 is a beneficial section: it was intended to provide incentive to promote exports. The intention was to exempt profits relatable to exports. Just as commission received by the assessee is relatab....