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2011 (11) TMI 442 - PUNJAB AND HARYANA HIGH COURTDeduction u/s 80IC – Revenue view that scrap sales and stock transfer to sister concern is not an income derived from manufacturing process – Held that:- Tribunal found that Gurgaon unit of the assessee has no manufacturing activity as such unit does not have any plant and machinery but only facility is of packaging and then transfer of the shaft assembly to Maruti Udyog Limited. It is, thus, concluded that the entire manufacturing process takes place at Parwanoo unit, therefore, deduction claimed is in respect of income derived from manufacturing process. Further, assessee is engaged in the manufacturing of automobile shafts' accessories. In such process, scrap is generated. Such scrap has direct link with the manufacturing process, i.e., manufacturing of shafts is bound to be generated. Deduction u/s 80IC is rightly allowed – Decided against the Revenue.
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