2016 (2) TMI 805 - SCH - Income Tax

Interpretation of term Total turnover Purpose of enactment of section 80HHC of the Act Scrap sale - Whether the sale proceeds from the scrap should have been included in the total turnover as the assessee was also selling scrap and that was also part of the sale proceeds Held that - The controversy in hand has been adjudicated upon by this Court in Commr.of Income Tax-VII, New Delhi vs. Punjab Stainless Steel Industries 2014 (5) TMI 238 - SUPREME COURT wherein held the intention behind enactment of Section 80HHC of the Act was to encourage export so as to earn more foreign exchange - If the purpose is to bring more foreign exchange and to encourage export, the legislature would surely like to give more benefit to persons who are making an effort to help our nation in the process of bringing more foreign exchange - once the Government decides to give some benefit to someone who is helping the nation in bringing foreign exchange, the Revenue should also make all possible efforts to encourage such traders or manufacturers by giving such business units more benefits as contemplated under the provisions of law HC was coming to the conclusion that the proceeds generated from the sale of scrap would not be included in the total turnover Decided against Revenue.

Summary

The Supreme Court allowed the applications and disposed of the civil appeals based on a previous judgment in Civil Appeal No.5592 of 2008 regarding Commr. of Income Tax-VII, New Delhi vs. Punjab Stainless Steel Industries. The judgment was delivered on 05.05.2014.