2011 (6) TMI 9 - DELHI HIGH COURT

Deduction u/s 80 IB - AO held that the scrap sale charges and job work/labour charges are to be excluded for the purpose of giving effect to deduction under Section 80 IB of the Act - Held that: - the activity of forging was “manufacturing” within the ambit of Section 80IB - It was immaterial that the assessee was doing the job of forging also for customers and was charging them on job-work basis or on the basis of labour charges. It will still be qualified as carrying eligible business under Section 80IB - the activities of the assessee in giving heat treatment for which it had earned labour charges and job-work charges, it can thus be said that the appellant had done a process on the raw material which was nothing but a part and parcel of the manufacturing process of the industrial undertaking - These were gains derived from industrial undertakings and so entitled for the purpose of computing deduction under Section 80IB - Decided in the favour of the assessee