2011 (11) TMI 442

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....pellant.   Shri Ravi Shankar, Advocate for the respondent.   Hemant Gupta , J. (Oral):   The revenue is in appeal under Section 260-A of the Income Tax Act, 1961 aggrieved against the order passed by the Income Tax Appellate Tribunal on 18.10.2010 in ITA No.553/Chandi/2010 for the assessment year 2006-07 raising following substantial questions of law:-   "1. Whether....

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....turing process and, therefore, not liable to deduction as contemplated under Section 80-IC of the Act.   In respect of the first substantial question of law, it was found by the Tribunal that the Gurgaon unit of the assessee has no manufacturing activity as such unit does not have any plant and machinery but only facility is of packaging and then transfer of the shaft assembly to Maruti Ud....

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....cannot at all be accepted to commend acceptability on the facts and in the circumstances of the case.   In the present case, the assessee is engaged in the manufacturing of automobile shafts' accessories. In such process, scrap is generated. Such scrap has direct link with the manufacturing process, i.e., manufacturing of shafts is bound to be generated. Therefore, in view of the judgment ....