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2013 (1) TMI 610 - HC - Income TaxDeductions u/s 80HHC - production of scrap - assessee was a 100% EOU - Held that:- As decided in CIT, Ludhiana Vs. Bicycle Wheels [2010 (10) TMI 496 - PUNJAB AND HARYANA HIGH COURT], Kar Mobiles' case [2010 (1) TMI 618 - KERALA HIGH COURT] the profits arising from the sale of scrap shall form part of business profits referred to in the formula for determining admissible deduction under Section 80HHC. It was also recorded that the sale of scrap and shall also form part of the total turnover of the assessee. Income from scrap sale is part of the business income from which exclusion of 90% thereof is not called for by operation of Explanation (baa)(i) to Section 80HHC, but at the same time, scrap sales turnover, if not included in the total turnover, should be added to the total turnover as denominator in the computation of eligible relief under Section 80HHC (3).
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