2010 (8) TMI 647

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..... rd with these appeals, raising the following substantial question of law:   "Whether on the facts and in the circumstances of the case, the Income Tax Appellate Tribunal was right in holding that sales tax and excise duty have to be excluded from the total turnover for the purpose of computing the deduction u/s.80HHC in relation to export profits?"   2. The question is no longer res in .....

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..... y turnover. Even if the assessee was an exclusive dealer in exports, the said commission was not includible as it did not spring from the turnover . Just as interest, commission, etc. did not emanate from the turnover , so also excise duty and sales tax did not emanate from such turnover. Since excise duty and sales tax did not involve any such turnover, such taxes had to be excluded. Commission, .....

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..... nt to bear in mind that excise duty and sales tax are indirect taxes. They are recovered by the assessee on behalf of the Government. Therefore, if they are made relatable to exports, the formula under Section 80-HHC would become unworkable. The view which we have taken is in the light of amendments made to Section 80-HHC from time to time." (the underlining is ours)   3. Having regard to th .....

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