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TMI Blog2016 (2) TMI 294X X X X Extracts X X X X X X X X Extracts X X X X ..... . Therefore, we confirm the action of the learned CIT (Appeals) in deleting the disallowance of deduction under section 80IC of the Act on registration charges to the extent of cost of products contained by the kit. Sale of scrap be held to be eligible for deduction under section 80IC - ITA No. 528 /Chd/2014, CO No. 33/Chd/2014 - - - Dated:- 10-12-2015 - H. L. Karwa, VP And Rano Jain, AM For the Appellant : Shri Tej Mohan Singh For the Respondent : Shri Sushil Kumar, DR ORDER Per Rano Jain, AM The appeal filed by the Revenue is directed against the order of learned Commissioner of Income Tax (Appeals), Shimla dated 6.2.2014 for assessment year 2007-08. The assessee has filed Cross Objections against the same. ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt of goods sold and ₹ 192/- on account of literature, application form, etc. Therefore, the registration charges receipt is the income derived from the manufacturing activities and as such, eligible for deduction under section 80IC of the Act. Regarding scrap sales, it was submitted that it is part and parcel of the activity of the industrial undertaking and eligible to claim of deduction under section 80IC of the Act. Reliance was placed on the judgment of Hon'ble Delhi High Court in the case of CIT Vs. Sadhu Forging Ltd., 336 ITR 444 (Del). Regarding interest and miscellaneous income, it was submitted that these also qualify for deduction under section 80IC of the Act as the same has been earned during the course of business ac ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... orm, etc. Thus registration charges received is the income derived from the manufacturing activities and as such, the income shown under this head also qualifies for deduction under section 80IC of the Act. It was submitted that the learned CIT (Appeals) has considered the portion of ₹ 192/- as not eligible for deduction, the balance amount being sale of products is definitely entitle to deduction under section 80IC of the Act. 7. We have heard the learned representatives of both the parties, perused the findings of the authorities below and considered the material available on record. On perusal of the order of the learned CIT (Appeals), we find that he has given a very apt finding on the allowability of registration fee for the p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... explaining the use of the product. By no stretch of imagination, this kit can be said to be not related to the business of the assessee. Since deduction under section 80IC of the Act is allowed on any income on sale of products of the company. The product sold through a kit cannot be said to be not of the business. Therefore, we confirm the action of the learned CIT (Appeals) in deleting the disallowance of deduction under section 80IC of the Act on registration charges to the extent of cost of products contained by the kit. 9. The appeal of the Department is dismissed. C.O.No.33/Chd/2014 : 10. In the Cross Objection, the assessee has raised the issue of deduction on interest income, miscellaneous income and sale of scrap. However, ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... . The fact that the Department has gone in appeal against the said order before the Hon'ble Punjab Haryana High Court does not make any difference since as on the date order of the Coordinate Bench is binding on us, since it is a trite law that an order rendered by any authority is a good law till the day when the said order is set aside by a process known to the law. Therefore, till the date the order of the Hon'ble High Court comes, the said order of the I.T.A.T. is binding on us. 13. The Cross Objection filed by the assessee is partly allowed. 14. In the result, the appeal of the Revenue in ITA No.528/Chd/2014 is dismissed and Cross Objections filed by the assessee in C.O.No.33/Chd/2014 is partly allowed. Order pronoun ..... X X X X Extracts X X X X X X X X Extracts X X X X
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