TMI Blog2012 (9) TMI 152X X X X Extracts X X X X X X X X Extracts X X X X ..... HHC - Decided in favor of assessee - ITA No.274/Chd/2012 C.O.No.15/Chd/2012 - - - Dated:- 22-6-2012 - Ms. SUSHMA CHOWLA, AND SHRI MEHAR SINGH, JJ. Assessee by : Shri Sudhir Sehgal Department by : Shri Akhilesh Gupta, DR ORDER PER SUSHMA CHOWLA, J.M,: The appeal filed by the Revenue is against the order of the Commissioner of Income-tax(Appeals)-I, Ludhiana dated 13.12.2011 relating to assessment year 2001-2002 against the order passed u/s 143(3) r.w.s. 254 of the Income Tax Act, 1961 (in short 'the Act'). The assessee has filed Cross Objections against the appeal filed by the Revenue. 2. The appeal of the Revenue and the Cross Objection filed by the assessee on the similar issue were heard together and are being disp ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ound of proceedings, show cause notice was issued to the assessee and reply of the assessee is incorporated at pages 2 to 4 of the assessment order. The observations of the Assessing Officer are at page 5 of the order and the Assessing Officer concluded that no expenditure was incurred on generation of scrap and the deduction under section 80HHC of the Act was recomputed by reducing the total sale value of scrap as profit on sale of scrap at Rs.67,39,197/-. The CIT (Appeals) on deliberating upon the submissions made by the assessee that the generation of scrap definitely involved expenditure held as under: "6. I have considered the facts of the case and it appears that the Assessing Officer in working out the profit element embedded in th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... Counsel that the profit, if any embedded in the sale of scrap in this case would be as per the calculations given above in the preceding paragraphs. The A.O., is, therefore, directed to reduce only this profit from the profits of the business of the appellant for the purposes of computing deduction under section 80HHC." 6. The Assessing Officer has thereafter passed an order giving effect to the order of CIT (Appeals), dated 17.2.2012 under which the profits on sale of scrap had been determined at Rs.2,98,598/-. A copy of the order has been placed on record by the learned A.R. for the assessee. 7. The learned D.R. for the Revenue placing reliance on the order of the Assessing Officer pointed out that in the absence of any detail being ..... X X X X Extracts X X X X X X X X Extracts X X X X
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