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TMI Blog2009 (11) TMI 16X X X X Extracts X X X X X X X X Extracts X X X X ..... by formulating the following questions of law: T.C.A.No.1091 of 2009: "Whether on the facts and in the circumstances of the case the Income-tax Appellate Tribunal is right in law in holding that, the Additional Price received for sale of free sugar is a capital receipt and cannot be included in the total income?" T.C.A.No.1092 of 2009: "Whether on the facts and in the circumstances of the case the Income-tax Appellate Tribunal was right in law in holding that, the Excise Duty and Sales-tax Collection are to be excluded from the total turn over for the purpose of computing the Income under Section 80HHC of the Income-tax Act, 1961?" 2. The facts of the case in T.C.A.No.1091 of 2009 are as follows: &nbs ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ded the sales-tax and excise duty as form part of the turn over in computing the income under Section 80HHC of the Income-tax Act. Against that order, the assessee preferred an appeal before the Commissioner of Income-tax (Appeals), who confirmed the order of the assessing officer. Against that order, the assessee preferred an appeal before the Income-tax Appellate Tribunal and the Tribunal following the decision of this Court in the case of Commissioner of Income-tax Vs. M/s. Sundaram Fasteners Limited 272 ITR 652 and allowed the appeal. Aggrieved by this order, the revenue filed the appeal. 4. Both the issues are now settled by the Supreme Court. in respect of the question of law in T.C.A.No.1091 of 2009, the Supreme Court in the case of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... it cannot form part of "turnover" for the purposes of section 80HHC, excise duty and sales tax also cannot form part of 'turnover'. Just as interest, commission, etc., do not emanate from the 'turnover' so also excise duty and sales tax do not emanate from such turnover. Since excise duty and sales tax did not involve any such turnover such taxes had to be excluded. Commission, interest, rent, etc., do yield profits, but they do not partake of the character of turnover and therefore they are not includible in the 'total turnover'. If so, excise duty and sales tax also cannot form part of the 'total turnover' under section 80HHC(3)." 6. Therefore, following the above said judgments of the Supreme Court, the appeals are dismissed as the qu ..... X X X X Extracts X X X X X X X X Extracts X X X X
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