TaxTMI 
TaxTMI 
2023 (1) TMI 369
X X X X Extracts X X X X
X X X X Extracts X X X X
....ereby the Ld. CIT(A) had partly allowed the appeal against the intimation/order, dated 18.03.2021, issued/passed by the Assistant Director of Income Tax, CPC under Section 143(1) of the Act. 2. The Appellant has raised following grounds of appeal: " 1. The Ld Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delhi (Hereinafter "CIT(A), NFAC") erred in deciding the appeal 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 n....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... Appellant was processed under Section 143(1) of the Act. In the intimation, dated 18.03.2021, issued to the Appellant the tax liability of the Appellant was computed at the rate of 30% being the rate applicable to a domestic company having total turnover in the previous year 2016-17 exceeding INR 250 Crores. 4. Being aggrieved, the Appellant carried the issue in appeal before CIT(A). However, the CIT(A) decline to grant relief. Therefore, the Appellant is before us in appeal on this issue. 5. The Ld. Authorised Representative for the Appellant appearing before us submitted that the income tax rate of 25% is applicable in the case of the Appellant since in the previous year 2016-17 the total turnover of the Appellant did not exceed the th....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ood 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 considered the relevant record and the judgments referred to. 17. To ascertain whether the turnover would also include sale proc....
X X X X Extracts X X X X
X X X X Extracts X X X X
....ount, would indicate sale proceeds from sale of the articles or things in which the business unit is dealing. When some other things like old furniture or a capital asset, in which the business unit is not dealing are sold, the sale proceeds therefrom would not be included in 'sales' but it would be shown separately. 21. In simple words, the word "turnover" would mean only the amount of sale proceeds received in respect of the goods in which an assessee is dealing in. For example- If a manufacturer and seller of air-conditioners is asked to declare his 'turnover', the answer given by him would show the sale proceeds of air-conditioners during a particular accounting year. He would not include the amount received, if any, ....
X X X X Extracts X X X X
X X X X Extracts X X X X
.... 24. The situation would be different in the case of the buyer, who purchases scrap from the respondent-assessee and sells it to someone else. The sale proceeds for such a buyer would be treated as "turnover" for a simple reason that the buyer of the scrap is a person who is primarily dealing in scrap. In the case on hand, as the respondent-assessee is not primarily dealing in scrap but is a manufacturer of stainless steel utensils, only sale proceeds from sale of utensils would be treated as his "turnover". 25. So as to be more accurate about the word "turnover", one can either refer to dictionaries or to materials which are published by bodies of Accountants. The Institute of Chartered Accountants of India ( hereinafter referred to as ....
X X X X Extracts X X X X
X X X X Extracts X X X X
....om 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 reas....