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TMI Blog2024 (7) TMI 730X X X X Extracts X X X X X X X X Extracts X X X X ..... nd answered in favour of the Assessee and against the Revenue, allowing deduction towards expenses of buying presentation articles. Deduction u/s 80HHC - proceeds of sale of scrap would be factored into the size of total turnover for purposes of computing the deduction - HELD THAT:- This issue has been squarely covered by the Supreme Court in Punjab Stainless Steel Industries [ 2014 (5) TMI 238 - SUPREME COURT] holding that for purposes of the term total turnover with regard to Section 80HHC, the ratio should be between the export turnover of the business in question and the total turnover of the business in question, and that the proceeds of sale of scrap would not form part of total turnover for purposes of Section 80HHC. In the facts of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... se, the sum of Rs. 2,33,726/- being the expenses incurred in respect of municipal taxes, maintenance and repair of rest/guest house is allowable as deduction? (2) Whether on the facts and circumstances of the case, the sum of Rs. 18,40,239/- being the expenses incurred in buying presentation articles is allowable as deduction? (3) Whether on the facts and circumstances of the case, the sum of Rs. 44,40,022/- being the sale proceeds of the scrap is part of the total income? (4) Whether on the facts and circumstances of the case, sum of Rs. 4,20,02,732/- being the lease rent received by the Appellant, are part of the total turnover? (5) Whether on the facts and circumstances of the case, 90% of interest of Rs. 1,29,87,402/- included in the le ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... urally be higher, leading to a larger multiple of the profits of business being considered, thereby leading to a larger deduction. 5. This issue has been squarely covered by the Supreme Court in Commissioner of Income Tax Vs. Punjab Stainless Steel Industries 364 ITR, 144, 151(23) holding that for purposes of the term total turnover with regard to Section 80HHC, the ratio should be between the export turnover of the business in question and the total turnover of the business in question, and that the proceeds of sale of scrap would not form part of total turnover for purposes of Section 80HHC. In the facts of the case at hand, such turnover would relate to a turnover of the paper manufactured by the Assessee, to which, the turnover of sale ..... X X X X Extracts X X X X X X X X Extracts X X X X
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