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TMI Blog2011 (11) TMI 442X X X X Extracts X X X X X X X X Extracts X X X X ..... t 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, sc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... tion under Section 80IC of the Income Tax Act on stock transfer to sister unit at Gurgaon ignoring the fact that stock had either been moved in raw or in semi-finished form and this does not constitute manufacturing activity? 2. Whether the learned ITAT was right in law in holding that the income from sale of scrap was eligible for deduction under section 80IC of the Income Tax Act? The a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ess takes place at Parwanoo unit, therefore, deduction claimed is in respect of income derived from manufacturing process. We do not find such finding is in any way erroneous which may give rise to said substantial question of law. In respect of second question of law, the Tribunal has relied upon judgment of the Madras High Court in Fenner (India) Ltd. v. CIT, 241 IR 803 (Madras), wherein ind ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... n of law arises for our consideration. Learned counsel for the revenue relied upon another judgment of Madras High Court in Pandian Chemicals Ltd. v. Commissioner of Income Tax, 254 ITR 562. But in the said judgment, a finding was recorded that there is no detail in respect of scraps, gunny bags for which assessee has claimed deduction. The judgment in Fenner India's case (supra) is applicable to ..... X X X X Extracts X X X X X X X X Extracts X X X X
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