ASSISTANT COMMISSIONER OF INCOME-TAX, CENTRAL CIRCLE - 1(2),, PUNE vs. M/S. FINOLEX CABLES LTD,, PUNE

The only issue to be decided is as to whether the CIT(A) justified in allowing the claim of assessee u/s. 80IC of the Act on income earned from sale of scrap when it was not derived from the activities of the eligible business.

Heard both parties and perused the material available on record. The AO denied the claim of assessee in claiming deduction u/s. 80IC of the Act in respect of income from sale of manufacturing scrap at Roorkee Plant. The CIT(A) by placing reliance on the order dated 06-03-2012 of this Tribunal in assessee‟s own case for A.Y. 2003-04 and also for A.Ys. 2002-03, 2004-05 and allowed the claim of assessee by holding that the income earned from sale of scrap is an eligible business and the assessee is entitled to claim the said income as deduction u/s. 80IC of the Act vide para 5.2 of impugned order. No contrary order was brought on record by the appellant-revenue. Therefore, we find no infirmity in the order of CIT(A) and it is justified. Thus, only ground raised by the Revenue is dismissed.

In the result, the appeal of Revenue is dismissed.