Scrap in the nature of bye-product of industrial operations, would qualify for deduction u/s 80IB

Mamania Family Trust Vs ACIT (ITAT Mumbai)- Where scrap has direct nexus with the industrial operations thereby implying that to the extent scrap is in the nature of bye-product of industrial operations, the same would qualify for deduction under section 80IB, since it is not clear as to how the scrap was generated and therefore, in order to verify whether the scrap had direct nexus with the industrial operation or its was scrap of other nature, we restore this issue to the file of the AO for necessary verification.

IN THE INCOME TAX APPELLATE TRIBUNAL
MUMBAI BENCHES, ‘B’, MUMBAI

BEFORE S/SHRI D.K.AGARWAL (JM) AND RAJENDRA SINGH(A.M)

ITA No. 2134/Mum/2009

(Assessment Year: 2006- 07)

Mamania Family Trust Vs

The Assistant Commissioner of Income Tax

Date of Hearing :                  09.08.2011

Date of Pronouncement : 24.08.2011

Appellant by                    : Mrs.Aarti A.Sathe

Respondent by             : Shri A.K.Nayak

O R D E R

PER D.K.AGARWAL (JM)

This appeal preferred by the assessee is directed against the order dated 3.3.2009 passed by the Learned Commissioner of Income Tax (A) for the assessment year 2006-07.