2000 (3) TMI 1086

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....epartment is whether the CIT(A) is right in excluding the insurance claim of ₹ 11,97,400 from the 'total turnover' while computing the deduction under section 80HHC. 2. The Assessing Officer while computing the deduction noticed that the assessee had received the aforesaid sum from the United Indian Insurance Co. Ltd. on account of loss of goods in fire which occurred in the factory of its....

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.... The formula, which is given above, contains 3 components. As regards "profits & gains of business" and "Export turnover", there is no dispute. The dispute is with reference to "total turnover". Explanation (ba) below sub-section (4B) of section 80HHC explains "total turnover" as under : "'total turnover' shall not include freight or insurance attribu....

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....es he provides, into money. This involves the idea of quid pro quo as consideration for parting with goods or rendering the services or providing the facilities. This idea is the very basis of a business, the "raison d'etre". When he stores goods in a place belonging to a sister-concern, and due to fire they got destroyed and he receives money from the insurers, he does not "turnove....

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....y, it is difficult to view it as anything resembling "turnover". The word "total" preceding the word "turnover" does not take the case further is used only to denote the "aggregate" and is not descriptive of the items of receipts that may properly fall to be considered as "turnover". 6. There is one other angle from which the question may be viewe....