2005 (10) TMI 43

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nst the order of the Appellate Tribunal in I.T.A. Nos. 696/Mds/1996 and 2326/Mds/97, dated November 8, 2004, the Revenue has preferred the appeals and raised the following common substantial question of law: "Whether, on the facts and circumstances of the case, the Tribunal was right in holding that sales tax, excise duty, sales of raw materials, charges of miscellaneous income and commission d....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....a part of turnover, but as a part of profit and decided the issue in favour of the assessee. The said order of the Appellate Tribunal is put in issue in the present appeals. It is fairly submitted by learned counsel appearing for the appellant that the issue raised in the question is covered against the Revenue by the decisions of this court in CIT v. Madras Motors Ltd./M.M. Forgings Ltd. [2002....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....td. [2000] 245 ITR 769, while interpreting the words 'total turnover' has observed as follows: 'That the total turnover cannot include the sales tax and the excise duty and total turnover should be restricted only to such receipts which have an element of profit in it and it would be only the sale price which should be the relevant figure.' In that case, the total turnover wh....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....nch of this court, in which one of us was a party, after considering the question in detail, held as under: "When the definition of total turnover excludes incidental expenses such as freight and insurance, which amount has to be borne by the assessee for safe transportation of his goods from and out of his pocket, it is highly impossible to accept the contention that the term, 'turnover&#3....