80IC deduction on scrap-sale income accepted as part of eligible business income from the manufacturing unit

Deduction under section 80IC was treated as available on income from sale of manufacturing scrap arising from the eligible unit, because the scrap-sale receipts were regarded as part of the business income of that undertaking. The appellate authority followed the Tribunal's earlier orders in the assessee's own case for prior assessment years, and no contrary decision was produced by the Revenue. The note therefore records that scrap-sale income from the eligible manufacturing unit was accepted as qualifying for the deduction.

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Issues: Whether deduction under section 80IC was admissible on income earned from sale of manufacturing scrap.

Analysis: The assessee had claimed deduction on scrap-sale income arising from the eligible unit. The appellate authority allowed the claim by following the Tribunal's earlier orders in the assessee's own case for prior assessment years. No contrary decision was brought on record by the Revenue, and the claim was treated as part of the eligible business income.

Conclusion: Deduction under section 80IC was rightly allowed on the income from sale of scrap.

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