9911796707
TMI Blog2004 (12) TMI 63X X X X Extracts X X X X X X X X Extracts X X X X ..... rnover is to be reduced by the direct and indirect costs attributable to such export which do not include freight and insurance after the customs point once excluded for arriving at the export turnover - Question is answered in the affirmative in favour of the assessee. - - - - - Dated:- 14-12-2004 - Judge(s) : D. K. SETH., SANKAR PRASAD MITRA. JUDGMENT D.K. Seth J.- This appeal was admitted on the ground "whether, on the facts and circumstances of the case, the Income-tax Appellate Tribunal was correct in upholding the order of the Commissioner of Income-tax (Appeals) directing the Assessing Officer to exclude the freight, insurance, etc., beyond the customs point from the amount of 'direct costs' while computing the deduction unde ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r from direct cost since it does not form part of the direct cost. Mr. Khaitan had relied upon the decision in CIT v. Sudarshan Chemicals Industries Ltd. [2000] 245 ITR 769 (Bom) and CIT v. Chloride India Ltd. [2002] 256 ITR 625 (Cal) in support of the contention. In reply, Mr. Agarwal pointed out that section 80HHC has undergone certain changes after 1991, which are relevant for the purpose of interpreting the amended provisions incorporating the definitions relied upon by Mr. Bajoria. After having heard learned counsel for the parties, in our view, the question, which was not directly involved either in the Bombay decision or the Calcutta decision, cited above, can be answered on the same analogy or reasoning given in the said two dec ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t out of the export, the export turnover is to be reduced by direct costs and indirect costs. Since freight and insurance are not part of the direct and indirect costs, the same cannot be excluded for arriving at the export turnover, as was rightly done by the learned Tribunal though the expression might be slightly ambiguous. The Assessing Officer shall assess in terms of the direction by the Income-tax Appellate Tribunal in the light of the observation made in this judgment by excluding the freight and insurance after the customs point in order to arrive at the export turnover and then for the purpose of arriving at the profit for export, the export turnover is to be reduced by the direct and indirect costs attributable to such export w ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
