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TMI Blog2022 (6) TMI 1025X X X X Extracts X X X X X X X X Extracts X X X X ..... rt of leather and molasses and also in the storage and handling of liquid cargo. 3. The Appeal was admitted on the following substantial question of law :- "Whether the Tribunal failed to appreciate that, the ground of appeal raised in the appeal was as to whether income from storage and handling and other receipts of Rs.1,63,58,569/- was to form part of total turnover and that it had failed to decide the corresponding issue in the appeal for assessment year 1989-90 ?" 4. There are two components of the question of law framed. First one is based on the observation and finding of the Tribunal that explanation in Clause (b), (baa) and (ba). Section 80HHC would have retrospective operation and therefore, the Appellant cannot avail of the b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ness income and therefore, the income was rightly not included in the computation for the purpose of deduction under Section 80HHC. On this aspect the Supreme Court made the following observations :- "According to the Revenue, the sale proceeds from the scrap should have been included in the "total turnover" as the respondent - assessee was also selling scrap and that was also part of the sale proceeds. The assessee had objected to the aforestated suggestion of the Revenue because inclusion of the sale proceeds of scrap into the total turnover would reduce the amount deductible under the provisions of section 80HHC of the Act. One can very well see that if the total turnover increases, the advantage which the assessee would get under Se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sale proceeds of air-conditioners during a particular accounting year. He would not include the amount received, if any, from the sale of scrap of metal pieces or sale proceeds of old or useless things sold during that accounting year. This clearly denotes that ordinarily a businessman by the word "turnover" would mean the sale proceeds of the goods (the things in which he is dealing) sold by him. So far as the scrap is concerned, the sale proceeds from the scrap may either be shown separately in the profit and loss account or may be deducted from the amount spent by the manufacturing unit on the raw material, which is steel in the case of the respondent-assessee, as the respondent-assessee is using stainless steel as raw material, from ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ses which the Appellant undertook as an export business. Further, in the appeal the Appellant has made a statement on oath, which is not controverted that it is engaged in the business of export of leather and molasses and storage and handling of liquid cargo at major ports. Not only that nothing contrary as regard this assertion is shown, in fact, the authorities have proceeded on the basis that the storage and handling of liquid cargo at major ports was a different business of leather and molasses. That being the position, in the light of law laid down in the case of Punjab Stainless Steel, the Appellant is entitled to succeed on second component and accordingly, the question of law framed will have to be answered in favour 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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