2015 (4) TMI 1319 - AT - Income Tax

Exemption under Section 10B - Exclusion of scrap sales from the total turnover - HELD THAT - AO has taken the scrap sales as part of the total turnover. However, the same was not taken as an export turnover. This Tribunal has held that the total turnover and the export turnover shall be of the same figure. Therefore, once the scrap sales were not formed part of the total turnover, the same cannot form part of the export turnover also. Therefore, we do not find any infirmity in the order of the CIT(A). In the result, the appeal of the Revenue stands dismissed.

Summary

Issues: Exclusion of scrap sales from total turnover

In this judgment by the Appellate Tribunal ITAT Chennai, the primary issue was the exclusion of scrap sales from the total turnover for the assessment year 2007-08. The Revenue appealed against the order of the Commissioner of Income-tax (Appeals)-VI, Chennai, which excluded scrap sales from the total turnover. The Departmental Representative argued that scrap sales should not be part of the total turnover based on previous judgments. The Tribunal considered the arguments presented by both parties.

The Tribunal observed that the Assessing Officer had included scrap sales in the total turnover but not as export turnover. The Tribunal referred to its previous decision where it held that total turnover and export turnover should be the same. Since scrap sales were not part of the total turnover, they could not be considered as export turnover either. Consequently, the Tribunal found no error in the order of the Commissioner of Income-tax (Appeals)-VI, which excluded scrap sales from the total turnover.

Therefore, the Tribunal dismissed the appeal of the Revenue, upholding the decision to exclude scrap sales from the total turnover for the assessment year 2007-08. The judgment was pronounced on 24th April 2015 in Chennai.