THE COMMISSIONER OF INCOME TAX-III, HYDERABAD vs. M/S. VISAKHA INDUSTRIES LIMITED

The Hon’ble Sri Justice C.V.Nagarjuna Reddy and The Hon’ble Sri Justice T.Amarnath Goud ITTA.No.164 of 2006 Dt: 02-01-2018 Between: The. Commissioner of Income Tax- III, Hyderabad ….Appellant and M/s.Visakha Industries Limited, Secunderabad ….Respondent

Counsel for the Appellant:

Mr.B.Narasimha Sharma

Counsel for the respondent:

Mr.A.Sanjay Kishore

The Court made the following:

CVNR, J & TA, J ITTA.No.164 of 2006 Dt: 02-01-2018

2 Judgment: (per Hon’ble Sri Justice C.V.Nagarjuna R eddy)

The main question of law raised in this Appeal by the Revenue is, whether the Sales Tax and Excise Duty are part of "Total Turnover" for the purpose of deduction under Section 80 HHC of the Income Tax Act, 1961 (for short, 'the Act'), and liable to be excluded from the said Turnover for the purpose of deduction under the said provision.

At the hearing, Sri B.Narasimha Sharma, learned Senior Standing Counsel for the Income Tax Department, has fairly submitted that in Commissioner of Income Tax Vs. Lakshmi Machine Works1, the Supreme Court has held that the Excise Duty and Sales Tax do not partake of the character of Turnover and that therefore, they are not includable in the “Total Turnover” under Section 80 HHC (3) of the Act.

In the light of the aforesaid judgment, the substantial questions of law framed in this Appeal are answered against the Revenue.

The Appeal is, accordingly, dismissed.

______________________ (C.V.Nagarjuna Reddy, J)

___________________ (T.Amarnath Goud, J) Date: 02-01-2018 lur

1 (2007) 290 ITR 667 (SC)

CVNR, J & TA, J ITTA.No.164 of 2006 Dt: 02-01-2018