JUDGMENT

Dr. ARIJIT PASAYAT, J.

1. Leave granted.

2. Challengein this appeal is to the order passed by a Division Bench of the Bombay High Court relating to the question whether sales tax and excise duty form part of the total turnover. Dispute relates to the Assessment year 1997-98.

3. Background facts in a nutshell are as follows:

While making assessment under Section 143(3) of the Income Tax Act, 1961 (in short the Act), assessing officer included excise duty and sales tax on the total turnover for computing the deduction under Section 80 HHC (3)(b) of the Act. The Commissioner of Income Tax (Appeals), Special Range 1, Nasik (in short the CIT (A), held that while calculating deduction under Section 80 HHC amounts of excise duty and sales tax collected by the assessee, are not to be included in the total turnover for the purpose of computing deductions under Section 80HHC. Revenue preferred an appeal before the Income Tax Appellate Tribunal, Pune Bench, Pune, (in short the Tribunal"). The appeal was dismissed following a decision of the Bombay High Court in CIT v. Sudarshan Chemical Industries Ltd. [(2000) 245 ITR 769 (Bom.)]. Appeal was preferred by the Revenue before the High C