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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 ..... f 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 [ 2014 (5) TMI 238 - SUPREME COURT] , 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 Appellant. - INCOME TAX APPEAL NO. 382 OF 2003 - - - Dated:- 16-6-2022 - NITIN JAMDAR N.R. BORKAR, JJ. Mr. Nitesh Joshi i/b. Atul Jasani for t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rved that the amendment to Section 80HHC brought in by the Finance (No.2) Act, 1991 is prospective. The view taken by the Tribunal therefore clearly stands overruled. 5. The second component is in respect of the charges from storage and handling, throughout charges, management charges, miscellaneous incomes and rental receipts which were included in the total turnover of the Appellant by the impugned order whereby the benefit available to the Appellant under Section 80HHC was correspondingly reduced. The learned Counsel for the Appellant placing reliance on the decision of the Supreme Court in the case of Commissioner of Income Tax v/s. Punjab Stainless Steel Industries (2014) 364 ITR 144 (SC) contends that this view taken by the Tri ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e amount deductible from the income under Section 80HHC would be reduced. By virtue of the impugned judgment delivered by the High Court, the accounting method followed by the respondent - assessee has been approved and, therefore, this appeal is filed by the Revenue. After explaining the interplay between the export turnover and total turnover, the Supreme Court considered the aspect of sales and observed thus :- In ordinary accounting parlance, as approved by all accountants and auditors, the term sales , when reflected in the profit and loss account, would indicate sale proceeds from sale of the articles or things in which the business unit is dealing. When some other things like old furniture or a capital asset, in which the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... manufacturer would dispose of the scrap of steel to someone who would re-cycle the said scrap into steel so that the said steel can be re-used. When such scrap is sold, in our opinion, the sale proceeds of the scrap cannot be included in the term turnover for the reason that the respondent unit is engaged primarily in the manufacturing and selling of steel utensils and not scrap of steel. Therefore, the proceeds of such scrap would not be included in sales in the profit and loss account of the respondent assessee. As regards the proposition as laid down by the Supreme Court in this case that the receipts which have no nexus to the export turnover cannot form total turnover, there is no dispute at the bar. The learned Coun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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