Johnson Pump (India) Ltd. (Now known as SPX Flow Technology (India) Pvt. Ltd.) v. ACIT (OSD), Cir.8, Ahmedabad
[Citation -2016-LL-1007-115]
| Citation | 2016-LL-1007-115 |
|---|---|
| Appellant Name | Johnson Pump (India) Ltd. (Now known as SPX Flow Technology (India) Pvt. Ltd.) |
| Respondent Name | ACIT (OSD), Cir.8, Ahmedabad |
| Court | ITAT-Ahmedabad |
| Relevant Act | Income-tax |
| Date of Order | 07/10/2016 |
| Assessment Year | 2004-05 |
| Judgment | View Judgment |
| Keyword Tags | computing deduction • total turnover • excise duty • sales tax |
| Bot Summary: | Grounds of appeal taken by the assessee are not in consonance with the Rule 8 of the Income Tax Rules, 1963 - they are descriptive and argumentative in nature. Brief facts of the case are that the assessee has filed its return of income on 30.10.2004 declaring total income at Rs.1,13,65,560/-. The assessee has claimed deduction under section 80HHC. While computing such deduction, it has excluded excise duty and sales tax aggregating to Rs.16,13,55,627/- from the total turnover. AO did not approve this type of calculation by following judgment of Hon ble Supreme Court in the case of M/s.Chowringhee Sales Bureau Pvt. Ltd., 87 ITR 542. The assessee contended before the AO that this issue is squarely covered by the decision of Hon ble Bombay High Court in the case of CIT Vs. Sudarshan Chemical Industries ltd. AO did not accept the contention of the assessee on the ground that this decision was not accepted by the Revenue, and it was challenged before the Hon ble Supreme Court. Hon ble Supreme Court has upheld view taken by the Hon ble Bombay High Court in the case of Sudarshan Chemical Industries Ltd. It has been held that sales-tax and excise duty would not form part of the total turnover while computing the deduction under section 80HHC. Therefore, we allow the appeal of the assessee and direct the AO to compute the deduction after excluding the sales tax and excise duty from the total turnover. |