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2015 (5) TMI 827 - HC - Income TaxEntitlement to deduction under section 80HHBA - sale of scrap - Held that:- As relying on Fenner (India) Ltd. Versus CIT (No. 2) [1998 (4) TMI 67 - MADRAS High Court] the scrap materials come within the manufacturing process of the industrial undertaking in the manufacture of certain products such as V-belts, oil seals. O-rings and certain rubber moulded products, etc. In this view of the matter, we are of the view that profits and gains from the sale of scrap materials are eligible to deduction in an amount equal to twenty per cent under section 80HH, inasmuch as such gains or profits are derived from the industrial undertaking and includible in the gross total income of the assessee and the question relatable to the profit on the sale of scrap is thus answered in favour of the assesse. Accrual of interest - ITAT deleted the addition - Held that:- there is no dispute to the fact that the assessee-company had passed requisite Board Resolutions not to charge interest from aforesaid 3 parties on the advances given by it to them. Therefore, we hold that the Assessing Officer was not justified to consider that the interest income has accrued to the assessee on the outstanding advances as the assessee has agreed not to charge interest on the outstanding advances before the interest income had accrued to it. - Decided in favour of assesse. Disallowance of registration charges - ITAT deleted disallowance - Held that:- It was essentially a question of fact whether apportionment of the registration charges and the stamp duty had been made by the assessee and the question of fact was answered concurrently in favour of the assessee both by the CIT(A) and the learned Tribunal. The amount allowed to be treated as revenue expenditure pertained to that part of the expenditure, which related to the construction raised by the assessee for the purpose of real estate business.Therefore, the investments made were all in the nature of revenue expenditure - Decided in favour of assesse.
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