Tribunal Upholds Deduction for Scrap Sales Under Section 80IB for Assessment Years 2008-09 to 2011-12

The Tribunal upheld the CIT(A)-11's order regarding the deduction u/s. 80IB for the sale of scrap not considered as income from manufactured products of an industrial undertaking for assessment years 2008-09 to 2011-12. The Tribunal found no reason to deviate from its previous decisions allowing such deductions and dismissed the Revenue's appeals, emphasizing the consistency of facts and issues across the years. The Tribunal's decision was pronounced on December 21, 2017, dismissing all appeals of the Revenue.

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Issues Involved:
Appeals filed by Revenue against CIT(A)-11's consolidated order for assessment years 2008-09 to 2011-12 regarding deduction u/s. 80IB for sale of scrap not considered as income from manufactured products of industrial undertaking.

Analysis:
The appeals filed by the Revenue against the consolidated order of CIT(A)-11, Pune, focused on the issue of deduction u/s. 80IB of the Income Tax Act 1961 for the sale of scrap not being considered as income from manufactured products of the industrial undertaking. The Tribunal noted that the issue in the present appeals was similar to earlier years and referenced the Tribunal's previous orders in the assessee's case from assessment years 2000-01 to 2007-08. In those orders, the Tribunal had allowed the deduction u/s. 80IB for sale of scrap generated from the manufacturing process, treating it as business income. The Tribunal referred to specific cases and judgments, including the decision of the Hon'ble Madras High Court in the case of M/s. Fenner India Ltd., to support the allowance of the deduction. The Tribunal highlighted that the Revenue failed to challenge the findings on this issue and concluded that since there were no changes in facts and circumstances in the impugned assessment years, there was no reason to take a different view. Therefore, the Tribunal upheld the order of the Commissioner of Income Tax (Appeals) and dismissed the appeals of the Revenue.

The Tribunal emphasized that the issue raised in the appeals by the Revenue was identical to the issue in the earlier years, with no change in the factual aspect. Consequently, the Tribunal upheld the order of the Commissioner of Income Tax (Appeals) and dismissed the grounds of appeal raised by the Revenue. The Tribunal further clarified that the facts and issues in other related appeals were identical to the main appeal, and the decision in the main appeal would apply mutatis mutandis to those appeals as well. Ultimately, the Tribunal pronounced the order on December 21, 2017, dismissing all the appeals of the Revenue.

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