TaxTMI 
TaxTMI 
2004 (10) TMI 33
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....e case, the Income-tax Tribunal is right in law in not considering the judgments of the Supreme Court reported in [1973] 87 ITR 542 in the case of Chowringhee Sales Bureau P. Ltd. v. CIT, and in the case of Sinclair Murray and Co. P. Ltd. v. CIT [1974] 97 ITR 615?" Question No. (1): Whether, on the facts and in the circumstances of the case, the Tribunal was right in holding that excise duty does not form part of the total turnover for the purpose of calculation of deduction under section 80HHC of the Income-tax Act? The Bombay High Court in the decision reported in CIT v. Sudarshan Chemical Industries Ltd. [2000] 245 ITR 769 rejected the contention of the Department to the effect that having regard to the plain words of section 80HHC of ....
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.... where the assessee carried on a composite business. In the latter case, it was provided that the profits derived from exports shall be the amount which bears to the profits of the business as computed under the head 'Profits and gains of business', the same proportion as the export turnover bears to the total turnover. The emphasis is on the words 'Profits derived from the exports'. Therefore, weightage must be given to such profits. Such profits cannot be reduced artificially by including statutory levies in the denominator, namely, total turnover. Therefore, the turnover should be restricted to such receipts which have an element of profit in it. It is only the actual sale price which is relevant. Anything charged by the assessee by way ....
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....fficer took the total turnover to be the turnover for the purpose of section 80HH of the Act to be the turnover from all the sources of business of the assessee, this court acknowledging the ratio laid down in CIT v. Sudarshan Chemical Industries Ltd. [2000] 245 ITR 769, accepted the contention of the assessee that the total turnover must be confined to the turnover of the product which was exported by the assessee and held that the amount received by way of Modvat credits could not have been received by the assessee, had the assessee not purchased the raw materials for running its industry of manufacturing forgings. This court, thus, held that the amount received by the assessee under Modvat credits were eligible for deduction under sectio....
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....ax was received by the appellant in its character as an auctioneer, the amount, in our view, should be held to form part of its trading or business receipt." In Sinclair Murray and Co. P. Ltd. v. CIT [1974] 97 ITR 615 (SC) again the dispute was that the sales tax collected by a trader was liable to be included in the total income of the assessee and it was held that the matter stood concluded by the decision in the case of Chowringhee Sales Bureau P. Ltd. [1973] 87 ITR 542 (SC). It is a settled law that though the "total turnover" may include the receipts of excise duty and sales tax, etc., in its general parlance and under specific statutes, because of its wider coverage in the definitions given thereunder, it has to be given a restricti....