2013 (1) TMI 626

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....llant. Mr. Rajesh Katoch, Advocate, for the respondents. HEMANT GUPTA, J.(Oral) The present appeal under Section 260-A of the Income Tax Act, 1961 arises out of an order passed by the Income Tax Appellate Tribunal, Chandigarh Bench, Chandigarh (for short 'the Tribunal') dated 6.1.2012 pertaining to the assessment year 2003-2004 raising following substantial questions of law:- (i) Whether in fa....

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....ough the assessee has framed the aforesaid three questions of law, yet it is question No.(i) which arises for consideration of this Court. The assessee is engaged in manufacturing of goods for export. In the process of manufacturing, the scrap is generated, which is a bi-product of manufacturing activity. The Assessing Officer has not accepted the explanation of the assessee that no expenses are ....

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.... at the instance of Revenue, the Tribunal recorded the following findings:- "9. As regards the inclusion of value of scrap sale in the profits of the business for computing the relief u/s 80HHC, the entire value of scrap sales cannot be included in the profits of the business. What can be included in the profits of the business for working out the relief u/s 80HHC is the profit element in respect....

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....823 of 2008 decided on 08.04.2011, wherein reliance has been placed upon an earlier order of this Court in Bicycles Wheels' case (supra) as well as the order of the Kerala High Court in The Commissioner of Income Tax, Cochin v. Kar Mobiles Limited - Income Tax Appeal No.773 of 2009 decided on 15.01.2010. Therefore, it is contended that the findings recorded by the Tribunal runs counter to the judg....