2006 (2) TMI 150

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....g Officer (i) added the excise duty on the raw materials, as also the excise duty payable on the finished goods in respect of the closing stock; (ii) disallowed the speculative loss that arose on account of sale of units within one month of purchase; and (iii) disallowed the dividend received from the units till the date of sale on the ground that it was a speculative income and had set off the speculative loss against the same. On appeal at the instance of the assessee, the Commissioner of Income-tax (Appeals) allowed the appeal on the above issues. On further appeal by the Revenue, the Tribunal confirmed the order of the Commissioner of Income-tax (Appeals). The aggrieved Revenue preferred the present appeal raising the following....

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....of turnover under the State levy cannot be imported into section 80HHC of the Act, particularly, when such expressions are incorporated and explained in the provision itself. Sales tax and excise duty are not to be included in the total turnover while computing the deduction under section 80HHC." In the abovesaid decision, the decision of the Bombay High Court reported in CIT v. Sudarshan Chemicals Industries Limited [2000] 245 ITR 769 was also referred to, wherein it has been held 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....