TaxTMI 
TaxTMI 
2017 (2) TMI 213
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....e and in law, the Ld. CIT(A) is justified in allowing the deduction u/s.80IB(4) in respect of Scrap Sales amounting to Rs. 52,95,310/- by treating the same as income derived from business activity of the industrial undertaking for the purpose of deduction u/s.80IB(4)." 3. The brief facts of the case are that the assessee is a family trust and carrying the business activities under the name and style of M/s. Apollo Plastics, having two units at Daman and engaged in the activity of manufacturing of electrical goods and plastic moulding articles, fans, brass and copper parts of electrical goods. The original assessment u/s.143(3) of the Income Tax Act, 1961( in short "the Act") was completed on 17.12.2007 determining the assessable income t....
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....enerated from industrial activities which has direct nexus with industrial operations, therefore, the claim was declined and the assessee filed further appeal before the CIT(A) who allowed the claim of the assessee, therefore, the revenue has filed the present appeal before us. ISSUE NO.1:- 5. We have heard the arguments advanced by the learned representative of the parties and perused the record. The learned representative of the revenue has argued that the assessee did not submit any evidence before the Assessing Officer, therefore, the Assessing Officer has rightly declined the claim of the assessee but the CIT(A) has wrongly allowed the claim of the assessee, therefore, the finding of the CIT(A) is wrong against law and facts whic....
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.... In response to which the appellant vide its letter dated 18.03.2013 stated that the percentage of scrap generated by similar undertakings in manufacturing activities ranges from 3 to 5 % and in moulding of articles ranges from 7 to 10% in brass, copper, iron and aluminium. It was also submitted that the percentage differs depending upon the quality of raw materials and machineries. The appellant further submitted that the percentage of scrap generated in its own case ranges from 1 to 1.25% of sale which is reasonable. As regards the production of documents from association of industries which satisfies any percentage of scrap generation in similar type of activities it was submitted that no association of industries do certify any such per....
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....irections of the ITAT in view of the order dated 30.11.2010. The said directions are hereby reproduced below:- "From the orders of the lower authorities, it is not clear as to how the scrap was generated and therefore, in order to verify whether the scrap had direct nexus with the industrial operation or it was scrap of other nature, we restore this issue to the file of the A.O. 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 u/s.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 ....