Scrap sale charges and job work/labour charges not to be excluded for the purpose of giving effect to deduction under Section 80IB of the Income Tax Act

CIT Versus Sadhu Forging Ltd (Delhi HC) – Assessee in giving heat treatment for which it had earned labour charges and  job-work charges, it can thus be said that the appellant had done a process on the raw material which was nothing but a part and parcel of the manufacturing process of the industrial undertaking. These receipts cannot be said to be independent income of the manufacturing activities of the undertakings of the assessee and  thus  could not be excluded from the profits and gains derived from the industrial undertaking for

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