Section 80HHC -Sales tax & excise duty will not form part of total turnover

SUPREME COURT OF INDIA

Commissioner of Income-tax, Chennai

v.

Shiva Tex Yarn Ltd.

CIVIL APPEAL NO. 614 OF 2008

Date of Pronouncement – SEPTEMBER 4, 2012

ORDER

Heard learned counsel on both sides.

This civil appeal filed by the Department concerns Assessment Year 2001-02.

The question involved in this appeal is, whether excise duty and sales tax need to be included in the total turnover in the formula – ‘Business income’ multiplied by ‘export turnover’ and divided by ‘total turnover’ in Section 80HHC(3) of the Income Tax Act, 1961?

This question has been answered in favour of the assessee in the case of CIT v. Lakshmi Machine Works [2007] 290 ITR 667.

Accordingly, the civil appeal filed by the Department stands dismissed with no order as to costs.

NF