AVON CYCLES LTD Vs. ASSISTANT COMMISSIONER OF INCOME TAX
INCOME TAX APPELLATE TRIBUNAL
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J. Kathuria, Accountant Member -
(1.) THIS appeal by the assessee is directed against the order dated 10-1-1994 passed by the CIT(A) (Central), Ludhiana, for assessment year 1992-93. The only issue involved in this appeal is whether the Revenue authorities were justified in reducing the claim of the assessee under Section 80HHC of the Income-tax Act, 1961.
(2.) Brief facts of the case are these : The assessee-company, in its return for assessment year 1992-93, showed total turnover at Rs. 96,17,49,925 as per the following details :-
Export incentives which included sale of import entitlement, duty draw back refund and cash assistance were calculated at Rs. 4,66,44,844, 90% of which came to Rs. 4,19,80,359. Deduction under Section 80HHC was worked out and claimed at Rs. 1,30,09,312 by multiplying the figure of Rs. 4,19,80,359 by Rs. 29,80,37,117 and dividing the same by Rs. 96,17,49,925. This was done on the basis of tax audit report.
(3.) THE Assessing Officer in his intimation under Section 143(1) (a) of the Act, however, calculated deduction under Section 80HHC at Rs. 57,69,914. This was done by making primarily two adjustments. In the first instance, the total turnover was computed at Rs. 1,00,31,70,771 as against the assessee's figure of Rs. 96,17,49,925. THE main reason for the difference in the figure of total turnover was that the Assessing Officer as per Annexure-A to the intimation, included items like steel subsidy, rubber subsidy, sale of scrap, miscellaneous income, grant in export marketing fund, rent received and trade discount as part of the total turnover.;
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