COMMISSIONER OF INCOME TAX Vs. MOTOR INDUSTRIES CO LTD

JUDGEMENT

(1.) THIS appeal is preferred by the Revenue. They have raised the following substantial questions of law for consideration by this Court:

(2.) INSOFAR as the first and second substantial questions of law, the Hon'ble Apex Court in the case of Commissioner of Income Tax Vs. Punjab Stainless Steel Industries and Others,2014 364 ITR 144explaining the meaning of 'turnover' and what constitutes turnover has held as under: 17. To ascertain whether the turnover would also include sale proceeds from scrap, one has to know the meaning of the term "turnover". The term "turnover" has neither been defined in the Act nor has been explained by any of the Central Board of Direct Taxes circulars.

(3.) IN view of the aforesaid declaration of law by the Hon'ble Apex Court, the insurance claim, sale of raw materials, tools, stores, scraps cannot form part of turnover for the purpose of computation of deduction under Section 80HHC of the Act. The said finding of the Tribunal is in accordance with law as laid down by the Hon'ble Supreme Court. Therefore, the first and second substantial questions of law are answered in favour of the assessee and against the Revenue.