TaxTMI 
TaxTMI 
2023 (1) TMI 369
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....without providing hearing through video conference in spite of the fact that the same has been specifically sought by the appellant. 2. The Ld CIT(A), NFAC erred in presuming that prior intimation have been issued in respect of adjustment made by the Assessing Officer CPC without appreciating the fact that the appellant specifically claimed that no such intimation was issued and without verifying the same from departmental database which is very much available to him on click of a button. 3. The Ld CIT(A), NFAC erred in holding that taxing income of the appellant @ 30% instead of 25% is covered u/s 143(1) without appreciating the fact of the case and law applicable thereto. 4. The Ld. CIT(A), NFAC erred in holding that while calculating "turnover" following items will be included: Particulars Amount in Rs. Interest Income on bank deposits 2.86 Cr. Profit on sale of fixed assets 0.17Cr. Provision for diminution in investments write back 1.40 Cr. Provision for doubtful debts write back 4.09 Cr. 8.53 Cr. The reasoning given for such inclusion in "turnover" is without any basis and against the esta....
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....submitted that for the purpose of fixing the rate of tax applicable to domestic company for the Assessment Year 2019-2020, the expression used by the Finance Act, 2018 is 'Total Turnover'. The use of word 'total' before the word 'turnover' cannot be ignored. The Finance Act, 2018 clearly provided that in case of a domestic company other than a company whose total turnover in the previous year 2016-17 does not exceed INR 250 Crores, the rate of income tax applicable would be 30%. In the case of the Appellant, the total turnover for the previous year 2016-17 stood at INR 251.86 Crores and therefore, the rate of 30% has been applied. 7. We have heard the rival submissions and perused the material on record. It is admitted position that the total turnover of INR 251.86 Crores for the previous year 2016-17 computed by the authorities below included 'Provisions for Doubtful Debts Write Back' of INR 4.09 Crores. The Hon'ble Supreme Court has, in the case of Punjab Stainless Steel Industries (supra) while examining the meaning of turnover as occurring the Section 80HHC of the Act, held as under: "16. We had heard the learned counsel appearing for both the sides and also conside....
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....any, from the sale of scrap of metal pieces or sale proceeds of old or useless things sold during that accounting year. This clearly denotes that ordinarily a businessman by word "turnover" would mean the sale proceeds of the goods (the things in which he is dealing) sold by him. 22. So far as the scrap is concerned, the sale proceeds from the scrap may either be shown separately in the Profit and Loss Account or may be deducted from the amount spent by the manufacturing unit on the raw material, which is steel in the case of the respondent-assessee, as the respondent-assessee is using stainless steel as raw material, from which utensils are manufactured. The raw material, which is not capable of being used for manufacturing utensils will have to be either sold as scrap or might have to be re-cycled in the form of sheets of stainless steel, if the manufacturing unit is also having its re-rolling plant. If it is not having such a plant, the manufacturer would dispose of the scrap of steel to someone who would re-cycle the said scrap into steel so that the said steel can be re-used. 23. When such scrap is sold, in our opinion, the sale proceeds of the scrap cannot b....
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.... each class of goods dealt with by the company and indicating the quantities of such sales for each class separately. Note (i) The term 'turnover' would mean the total sales after deducting therefrom goods returned, price adjustments, trade discount and cancellation of bills for the period of audit, if any. Adjustments which do not relate to turnover should not be made e.g. writing off bad debts, royalty etc. Where excise duty is included in turnover, the corresponding amount should be distinctly shown as a debit item in the profit and loss account.' (Emphasis supplied) The aforestated meaning given by the ICAI clearly denotes that in normal accounting parlance the word "turnover" would mean "total sales" as explained hereinabove. The said sales would definitely not include the scrap material which is either to be deducted from the cost of raw material or is to be shown separately under a different head. We do not see any reason for not accepting the meaning of the term "turnover" given by a body of Accountants, which is having a statutory recognition. 26. If all accountants, auditors, businessmen, manufacturers etc. are normally interpreting the term ....