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TMI Blog2007 (10) TMI 543X X X X Extracts X X X X X X X X Extracts X X X X ..... The fact that a part of the income, which was set off against the carried forward loss and depreciation even when, as a result of such set off, was not available for being taxed, was nevertheless deemed to be available for taxation to the extent of thirty per cent, of the book profit, could not therefore result in the assessee becoming entitled to carry forward the extent of the loss which could not be utilised for reducing the burden of taxation by setting off the same against the profits being carried forward to a succeeding assessment year or years. Section 115J allows only the unabsorbed losses, depreciation, investment allowance, etc., which could otherwise have been carried forward, to be carried forward. The allowances need not have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee is a company in which the public are not substantially interested. For the relevant assessment year, the assessee filed a return of income on 31-12-1990. While completing the assessment, the assessing officer disallowed certain claims, including adjustment of book profit liability under Section 115J of the Income-tax Act as unabsorbed depreciation. The assessing officer further held that while computing the deduction under Section 80HHC, excise duty, sales tax and scrap sales should be included and thus passed assessment order. 3. The assessee carried the matter on appeal to the Commissioner of Income-tax (Appeals), who inter alia held that computation of book profit is done under the extra ordinary provisions of Section 115J ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the decision of this Court rendered on 19-11-2001 in the case of Commissioner of Income-tax v. Fab Exports (P.) Limited reported in (2002) 258 ITR 56. In the said decision, this Court has held that the plain words of Section 115J(2) are that the determination of the amount in relation to the previous year to be carried forward to the subsequent year under the provisions referred to therein shall not be affected by anything contained in sub-section (1). Those words are clear enough. The fact that a part of the income, which was set off against the carried forward loss and depreciation even when, as a result of such set off, was not available for being taxed, was nevertheless deemed to be available for taxation to the extent of thirty per cen ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 61 is a beneficial section. It was intended to provide incentive profits relatable to exports. Just as commission received by the assessee is relatable to exports and yet it cannot form part of turnover for the purposes of Section 80 HHC, excise duty and sales tax also cannot form part of turnover . Just as interest, commission, etc., do not emanate from the turnover so also excise duty and sales tax do not emanate from such turnover . Since excise duty and sales tax did not involve any such turnover, such taxes had to be excluded. Commission, interest, rent, etc., do yield profits, but they do not partake of the character of turnover and therefore they are not includible in the total turnover . If so, excise duty and sales tax also ..... X X X X Extracts X X X X X X X X Extracts X X X X
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