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TMI Blog2013 (4) TMI 516X X X X Extracts X X X X X X X X Extracts X X X X ..... is right in law and on facts in Directing the assessing officer to exclude excise duty and sales tax for the purpose of calculating deduction u/s.80HHC?" (B) Whether The Appellate Tribunal is right in law and on facts in holding that Rs.9,16,617/- (excise duty refund) falls within the purview of provisions of Explanation (baa) to section 80HHC?"" 2. Noticing the relevant facts, in the return of income of the assessee for the Assessment Year 1994-95, the Assessing Officer while working eligible deduction under section 80HHC, computed total turnover by adding Sales Tax of Rs.6,61,131/- and Excise Duty of Rs.45,11,261/-. Further, the Assessing Officer noticed that the Central Excise set-off/refund of Rs.9,15,616/- was in the nature of an as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... indicate that they became necessary in order to make the formula workable. If so, excise duty and sales tax also cannot form part of the "total turnover" under section 80HHC(3). 4.1 The Apex Court observed further - "Therefore, just as commission received by an assessee is relatable to exports and yet it cannot form part of "turnover", excise duty and sales tax also cannot form part of the "turnover". Similarly, "interest" emanates from exports and yet "interest" does not involve an element of turnover. The object of the Legislature in enacting section 80HHC of the Act was to confer a benefit on profits accruing with reference to export turnover. Therefore, "turnover" was the requirement. Commission, rent, interest, etc. did not involve ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... as part of the income, there was no reason to have considered the same in the light of Explanation (baa) to section 80HHC of the IT Act. The assessee made detailed submission before the learned CIT(A) but the learned CIT(A) without passing any speaking order on the issue rejected the claim of the assessee by considering other issues attached to the above ground of appeal. According to section 250(6) of the IT Act, the learned CIT(A) is required to pass speaking order discussing the point for determination, submission of the assessee and should have given reasons for decision on the same. Since the learned CIT(A) did not appreciate the facts of the case in proper perspective and has not passed speaking order, we, therefore, set aside the ..... X X X X Extracts X X X X X X X X Extracts X X X X
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