High Court rules sale of scrap not part of business activities for machine screw manufacturer

The High Court of Madras dismissed the tax cases of an assessee engaged in the manufacture of machine screws, ruling that the sale of scrap was not considered part of their business activities. The court emphasized that the primary business of the assessee was the manufacture of machine screws, not the sale of scrap, and therefore, the disposal of scrap did not fall within the scope of their business operations.

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The High Court of Madras dismissed the tax cases of an assessee engaged in the manufacture of machine screws, stating that the sale of scrap was not part of their business. The disposal of scrap did not indicate it was in the course of business. The court ruled that the business of the assessee was the manufacture of machine screws, not the sale of scrap.

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