TMI Blog2020 (9) TMI 609X X X X Extracts X X X X X X X X Extracts X X X X ..... les claimed as deduction by the assessee u/s 80IC is part and parcel of business activities and forms part of the business gains, thus required to be included in the gains from business to be eligible for deduction u/s 80IC. So, we are of the considered view that ld. CIT (A) has erred in disallowing the amount of ₹ 7,08,730/- as deduction from scrap sales u/s 80IC. Consequently, the appeal filed by the assessee is hereby allowed and remaining disallowance claimed by the assessee as deduction u/s 80IC is hereby allowed. - ITA No.3936/Del./2017 - - - Dated:- 4-9-2020 - Shri O.P. Kant, Accountant Member And Shri Kuldip Singh, Judicial Member For the Assessee : None For the Revenue : Shri S.N. Meena, Senior DR ORDER ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tantial amount of scrap sales having been credited in the profit and loss account qua which assessee has claimed deduction under section 80IC of the Act at the respective rates of reduction. Declining the contentions raised by the assessee company, AO disallowed deduction claimed under section 80IC on the amount of scrap sales and added to the total income for the taxation as under:- Name of the unit Amount of scrap sale (in Rs.) Rate of Deduction claimed Deduction u/s 80IC (in Rs.) Supercera Fibres Unit 297409 30% 89223 Polyurethane Unit ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... rap rolls, etc. which has been generated in the business of the assessee. It is settled principle of law that scrap generated in the business is part and parcel of the income derived from business and as such forms part of the business profit as has been held by Hon ble High Court of Delhi in case of CIT vs. Sadu Forgings Ltd. (2011) 336 ITR 444 (Del.) . However, ld. CIT (A) though mentioned in para 5.3 of the impugned order that, the assessee s contention appears prima facie plausible yet it is necessary to examine the assessee s claim in the present case to ensure that the facts of the case aligning with the extant law . Ld. CIT (A) accepting the contentions raised by the assessee allowed the deduction under section 80IC to the exte ..... X X X X Extracts X X X X X X X X Extracts X X X X
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