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TMI Blog2006 (1) TMI 92X X X X Extracts X X X X X X X X Extracts X X X X ..... any error in the order of the Tribunal and no question of law much less a substantial question of law arises for consideration of this court. Hence, the appeals are dismissed - - - - - Dated:- 20-1-2006 - Judge(s) : P. D. DINAKARAN., P. P. S. JANARTHANA RAJA. JUDGMENT The judgment of the court was delivered by P.D. Dinakaran J.-Heard. The above appeals are preferred under section 260A of the Income-tax Act, 1961, against the common order of the Income-tax Appellate Tribunal, Madras Bench "C" dated February 8, 2005, in I.T.A. No. 2704/Mds/96 and 51/Mds/97. The facts in brief are: The assessee-company is a textile mill, engaged in the manufacture of cotton yarn. For the assessment year 1993-94, the Assessing Officer, by an order d ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not form part of the turnover, for the purpose of calculation of deduction under section 80HHC? 4. Whether, on the facts and circumstances of the case, the Tribunal was right in holding that the insurance compensation received by the assessee is to be treated as a revenue receipt?" It is fairly conceded by learned counsel appearing for the Revenue that the issues involved in questions Nos. 1 and 2 raised in the above two appeals are covered by the decision of this court rendered in CIT v. Janakiram Mills Ltd. [2005] 275 ITR 403, the third question is covered by the decision of this court rendered in the CIT v. Wheels India Ltd. [2005] 275 ITR 319 and the fourth question is covered by the decision of the Supreme Court in the CIT v. Sirpu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n rendered by this court in CIT v. Madras Motors Ltd./M.M. Forgings Ltd. [2002] 257 ITR 60 confirmed the order of the Commissioner of Income-tax (Appeals) in directing the Assessing Officer to exclude the excise duty and sales tax from the total turnover. This court in the decision second cited supra in CIT v. Wheels India Ltd. [2005] 275 ITR 319 held that it is highly impossible to accept the contention that the term "turnover" would include the excise duty and sales tax components which are all indirect taxes and which the assessee has to collect and pay over to the Government and such statutory dues will not have any element of profit of business and therefore, the sales tax and excise duty are not to be included in the total turnover ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... machine. The Supreme Court in CIT v. Sirpur Paper Mills Ltd. [1978] 112 ITR 776 held that the balance amount of compensation left after incurring the expenditure was a capital receipt. Recently, following the abovesaid apex court decision, the Calcutta High Court in CIT v. Kanoria Chemicals and Industries Ltd. [2001] 247 ITR 495 has held that the Tribunal was correct in holding that the insurance amount received by the assessee which was in excess of the cost of fully damaged machinery was not liable for tax. In the present case, the Appellate Tribunal upheld the order of the Commissioner of Income-tax (Appeals) that the balance amount of Rs. 17,79,919 was to be treated as capital receipt. We therefore, hold that the order of the Appella ..... X X X X Extracts X X X X X X X X Extracts X X X X
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