TaxTMI 
TaxTMI 
2011 (8) TMI 498
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....ity of manufacturing of Electrical Goods and Plastic Moulding articles, Fans, Brass and Copper parts of electrical goods. The return was filed declaring total income of Rs.NIL. The AO after processing the return under section 143(1) of the Income Tax Act, 1961 (in short the Act) selected the case for scrutiny and accordingly issued notices under section 143(2) and 142(1). During the course of assessment proceedings, the AO, from the details filed with the return of income, noted that the assessee has credited Rs.76,88,500/- as Scrap Sales from Unit -II and claimed deduction under section 80IB(4) of the Act. On being asked as to why the scrap sales should not be disallowed for the purpose of deduction under section 80IB(4), it was submitted ....
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....ce versa) (1999) 240 ITR 24 (Madras) assessed theinterest receipt of Rs.5,980/- under the head income from other sources and accordingly completed the assessment at an income of Rs.76,94,480/- vide order dated 24.11 .2008 passed under section 143(3) of the Act. On appeal, the learned Commissioner of Income Tax (A) while agreeing with the views of the AO confirmed the additions made by the AO and dismissed the appeal. 3. Being aggrieved by the order of the learned Commissioner of Income Tax (A), the assessee is in appeal before us taking following grounds of appeal: "1. The learned CIT(A) erred in disallowing deduction under section 80IB(4) in respect of Scrap Sales of Rs.76,88,500/- by treating the same as income not derived out of ....
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....f the AO for necessary verification. To the extent, the scrap has direct nexus with the industrial operations thereby implying that to the extent scrap is in the nature of bye-product of industrial operations, the same would qualify for deduction under section 80IB. In the result, ground No.3 for A.Y. 2003- 04 and ground No.1 for A.Ys. 2004-05 and 2005-06 are allowed for statistical purpose." 6. In ground No.2, which in respect of interest income, theTribunal vide paragraph 4 of its order has held as under: "4. Having heard both the parties, we do not find any reason to interfere with the order of the learned CIT(A) in view of the decision of the Hon'ble Supreme Court in the case of Liberty India V/s CIT (2009) 317 ITR 218 (SC), wherein i....