TMI Blog2015 (6) TMI 1227X X X X Extracts X X X X X X X X Extracts X X X X ..... ecided in favour of the assessee. - ITA Nos. 6182, 6183/Del/2013 - - - Dated:- 2-6-2015 - SHRI G.C. GUPTA, VICE PRESIDENT AND SHRI T.S. KAPOOR, ACCOUNTANT MEMBER For the Appellant : Shri Niren Gupta,CA For the Respondent : Ms. Sulekha Verma, CIT(DR) ORDER PER G.C. GUPTA, VICE PRESIDENT These two appeals filed by the assessee for the assessment years 2006-07 and 2007-08 are directed against the order of the CIT(A). These are being disposed of with this consolidated order. Identical ground of appeal No. 1 in both these appeals of the assessee is as under :- That the CIT(A) has on wrong interpretation of Sec. 153 A has erred in confirming the additions made by AO which are not based on any material found in t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g undertaken by the assessee would also generate scrap in the process of manufacturing . The receipts of sale of scrap being part and parcel of the activity and being proximate thereto would also be within the ambit of gains derived from industrial undertaking for the purpose of computing deduction u/s 80IB. 5. Ld. CIT (DR) has opposed the submissions of the Ld. Counsel for the assessee. She submitted that the assessee is in the business of manufacturing of DG sets and the scrap is not a by-product of the process. She submitted that the decision of Hon ble Jurisdictional High Court in the case of CIT-III vs. Sadhu Forging Ltd. (supra) was distinguishable on facts and in that case the assessee was in the business of forging resulting in g ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... roceeds from the sale of scrap would not be included in the total turnover u/s 80HHC of the Act. 7. We have considered the rival submissions and have perused the order of CIT(A) and AO. We find that the only issue in this ground of appeal of the assessee is regarding that whether the assessee was entitled to deduction u/s 80IB in respect of scrap sale for the relevant assessment years . The issue is covered in favour of the assessee with the decision of Hon ble Jurisdictional High Court in the case of CIT-III vs. Sadhu Forging Ltd. (supra) wherein held that since manufacturing activity of type of material being undertaken by the assessee would also generate scrap in the process of manufacturing, receipts of sale of scrap being part and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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