2004 (12) TMI 63

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....e facts and circumstances of the case, the Income-tax Appellate Tribunal was correct in upholding the order of the Commissioner of Income-tax (Appeals) directing the Assessing Officer to exclude the freight, insurance, etc., beyond the customs point from the amount of 'direct costs' while computing the deduction under section 80HHC?" In relation to this question, Mr. Agarwal pointed out to the ....

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....r the purpose of clause (b) of sub-section (3) of section 80HHC. The concept of "export turnover" as defined in clause (b) of the Explanation at the end of the section would be relevant for the purpose. Therefore, according to them, the export turnover is to be reduced by direct and indirect costs attributable to such export after arriving at the figure of the export turnover. In order to arrive a....

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....ch was not directly involved either in the Bombay decision or the Calcutta decision, cited above, can be answered on the same analogy or reasoning given in the said two decisions. That apart the provisions of section 80HHC as applicable for the assessment year 1993-94 are clear and unambiguous and need no assistance of any decision. The concept of "total turnover" as rightly contended by Mr. Agarw....

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....ance attributable after the custom points are to be excluded. In relation to sub-section (3), clause (b), we are not concerned with total turnover. We are concerned with the export turnover, in order to arrive at the figure whereof the freight and insurance attributable after the customs point is excludible and does not form part of the direct costs or indirect costs attributable to such export. ....