2015 (9) TMI 1404

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..... GODARA, JUDICIAL MEMBER:- This Revenue's appeal for A.Y. 2008-09, arises from order of the CIT(A) Valsad dated 27-01-2011 in appeal no. CIT(A)/VLS/10-11 in proceedings under section 143(3) of the Income Tax Act, 1961; in short "the Act". 2. The Revenue's first substantive ground challenges the CIT(A)'s order holding assessee's income from scrap sales of Rs. 1,98,072/- to be eligible for se....

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....ly 'incidental' to manufacturing and not 'derived' therefrom. He quoted tribunal's order in assessee's own case pertaining to the preceding assessment year on the very issue and held its scrap sales in question to be not eligible for section 80IB deduction. 4. The CIT(A) has accepted assessee's corresponding ground in view of the case law DCIT vs. Harjivandas Juthabai Zaveri (2002) 258 ITR 785 ....

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....djudicated this very substantial question in asssesee's favour. The same view is reiterated in a recent decision (2014) 42 taxmann. 403 (Guj) CIT vs. Jikar A Saiyed. Both views hold that income arising from sale of scrap is eligible for section 80IB deduction as derived from the manufacturing activity in question. We follow the hon'ble jurisdictional high court against that of the learned coordina....