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TMI Blog2016 (7) TMI 1563X X X X Extracts X X X X X X X X Extracts X X X X ..... THOMAS. [ 2001 (11) TMI 73 - KERALA HIGH COURT ] - Consequently, the issue raised in this appeal is answered in favour of the Department and against the assessee. - K. S. Jhaveri And G. R. Udhwani, JJ. For the Appellant : B. S. Soparkar, Swati Soparkar, Bhargav Karia, R. K. Patel For the Respondent : Mauna M. Bhatt JUDGMENT K. S. Jhaveri, J. 1. By way of these appeals, the common appellant- assessee has challenged the orders dated April 30, 2007 and September 17, 2010 of the Income-tax Appellate Tribunal, Ahmedabad A Bench, Ahmedabad, in I. T. A. No. 918/Ahd./2005 for the assessment year 2000-01 and in I. T. A. No. 1484/Ahd./2005 for the assessment year 2001-02 respectively. 2. While admitting the Tax Appeal No. 1553 of 2007 on December ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it calculated under the head profits and gains of the business. The assessee has number of prop. concerns but the profits of all the concerns fall under the single head i.e. profits and gains of the business. Similar is the case with adjusted export turnover and adjusted total turnover of the business. Here it should be noted that sub-clause (i) of clause (c) of sub-section (3) talks about adjusted total turnover of the business (not the unit or concern). Therefore, total turnover has to be calculated after taking into consideration the turnover of all the businesses of the assessee. 3.1. Learned counsel for the appellant has drawn the attention of this court to the decision in the case of CIT v. Padmini Technologies Ltd. reported in [2011] ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... essary implication, the total turnover of business would only mean total turnover of business of goods to which the section applies. Inclusion of turnover of goods to which the section does not apply, would be doing violence to the language of sub-section (3)(b). Sub-section (3) is inserted only to determine the deductible profits out of the total profits of business which can be attributed to the export business. We are in respectful agreement with the rationale adopted by the Madras High Court in CIT v. Madras Motors Ltd. [2002] 257 ITR 60 (Mad). As a matter of fact, there could be a circumstance where one unit is completely engaged in export and not partially as was the case in Madras Motors Ltd. (supra). In those circumstances, there wo ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he assessee from exports of goods manufactured by the assessee. In so far as exports made by the assessee in respect of goods manufactured by the supporting manufacturers was concerned, the assessee had recorded a loss of ₹ 6.86 crores. It was also found that the assessee had issued certificates of disclaimer in favour of supporting manufacturers in respect of goods supplied by them for the purposes of export. It is in these circumstances that the Assessing Officer came to the conclusion that no deduction was available to the assessee on export of goods as it had as a matter of fact recorded a net loss. Therefore, the question which came up for consideration before the Supreme Court was whether the assessee was entitled to a deduction ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s and therefore, the impugned order of the Tribunal was upheld. In the present case for every activity of the individual, there are different companies like Agrawal Overseas Corporation, Devraj Agrawal Share Trading, Agrawal Lignite Corporation, Agrawal Investment and Finance Corporation and Agrawal Warehousing Corporation. It is further submitted that the above referred to decision of the Delhi High Court was followed earlier in the case of CIT v. Rathore Brothers reported in [2002] 254 ITR 656 (Mad), wherein a similar view is taken. 3.3. Learned counsel for the appellant-assessee has further relied on the decision of the hon'ble Supreme Court in the case of CIT v. Canara Workshops (P.) Ltd. reported in [1986] 161 ITR 320 (SC) wherein ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the hon'ble Supreme Court in the case of CIT v. K. Ravindranathan Nair reported in [2007] 295 ITR 228 (SC) and of the Kerala High Court in the case of CIT v. Jose Tho mas reported in [2002] 253 ITR 553 (Ker). 5. We have heard learned counsel appearing for the respective parties and perused the records of the case. On going through the judgment of the Delhi High Court as referred hereinabove, it seems to be very descriptive and acceptable to the facts of the case, but on detailed examination of the section, the issue has to be read in light of the following Explanations of the above section : (b) 'export turnover' means the sale proceeds received in, or brought into, India by the assessee in convertible foreign exchange in accor ..... X X X X Extracts X X X X X X X X Extracts X X X X
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