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[2008] 306 ITR 157 (MAD.) HIGH COURT OF MADRAS Commissioner of Income-tax v. Ashok Leyland Ltd. P. D. DINAKARAN AND P. P. S. JANARTHANA RAJA, JJ. T.C. (A) NO. 2282 OF 2006 SEPTEMBER 14, 2006 Section 80HHC of Income-tax Act, 1961 - Deductions - Exporters Excise duty and sales tax receipts does not form part of turnover In view of the decisions in CIT v. Wheels India Ltd. [2005] 275 ITR 319 (Mad.) and CIT v.Sundaram Industries Ltd. [2005] 272 ITR 652 (Mad.), excise duty and sales tax receipts does not form part of the turnover, for the purpose of calculation of deduction under section 80HHC. T. Ravi Kumar for the Appellant. JUDGMENT P.D. Dinakaran, J.-The above tax case appeal is directed against the order of the Income-tax Appellate Tribunal in I. T. A. No. 1302/Mds/2003 dated February 8, 2006. 2. The Revenue is the appellant. During the relevant assessment year, the assessee's claim with respect to deduction under section 80HHC by not considering the excise duty and sales tax receipts as part of the turnover was disallowed by the Assessing Officer. Hence, the assessee filed an appeal before the Commissioner of Income-tax (Appeals). The Commissioner (Appeals) allowed the appeal directing the Assessing Officer to exclude the excise duty and sales tax receipts from the total turnover. On appeal, at the instance of the Revenue, the Income-tax Appellate Tribunal dismissed the appeal, confirming the order of the Commissioner (Appeals). 3. Aggrieved by the same, the Revenue has preferred this appeal raising the following substantial question of law : "Whether, in the facts and circumstances of the case, the Tribunal was right in law in holding that excise duty and sales tax receipts does not form part of the turnover, for the purpose of calculation of deduction under section 80HHC ?" 4. With respect to the question whether the excise duty and sales tax is not includible in the turnover while calculating the deduction under section 80HHC, this court in CIT v. Wheels India Ltd. [2005] 275 ITR 319 and CIT v. Sundaram Fasteners Ltd. [2005] 272 ITR 652 , which were followed by this court in CIT v. India Pistons Ltd. [2006] 282 ITR 632 , wherein it is held that it is highly…

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