COMMR.OF INCOME TAX-XVII,NEW DELHI vs PUNJAB STAINLESS STEEL INDUSTRIES

The Supreme Court addressed the interpretation of 'total turnover' under Section 80HHC of the Income Tax Act, 1961, determining that the sale proceeds from scrap should not be included in the total turnover for calculating deductions. The Court held that including scrap sales would unfairly reduce the deductible amount under Section 80HHC, thereby affirming the High Court's approval of the accounting method used by the respondent-assessee. The judgment clarified that the definition of total turnover must align with the intent of the statute to encourage exports.