The Commissioner Of Income Taxpanchkula v. M/S. Sunil Chirag & Co.jagadhari

IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. --- Income Tax Appeal No. 205 of 2006Date of decision: 1.12.2010 The Commissioner of Income TaxPanchkula --- Appellant Versus M/s. Sunil Chirag & Co.Jagadhari --- Respondent CORAM:HON’BLE MR. JUSTICE ADARSH KUMAR GOELHON’BLE MR. JUSTICE AJAY KUMAR MITTAL --- Present:Mr. Yogesh Putney, Senior Standing Counselfor the appellant. Mr. B.R. Gupta, Advocatefor the respondent. --- AJAY KUMAR MITTAL, J. This order will dispose of eight appeals, namely, IncomeTax Appeal Nos., 154, 155, 205 to 209 of 2006 and 235 of 2007 as asimilar issue is involved therein In Income Tax Appeal No. 205 of 2006 filed under Section260A of the Income-Tax Act, 1961 (for short “the Act”) by theRevenue against the order dated 8.9.2005, passed by the IncomeTax Appellate Tribunal Chandigarh Bench ‘A’, Chandigarh (in short“the Tribunal”) in ITA No. 790/CHANDI/2004, relating to the assessment year 2000-2001, the following substantial question of law has been claimed by the Revenue for determination of this Court: “Whether on the facts and in the circumstances of thecase, the learned ITAT was right in law in holding that thesales of brass scrap which constitute more than 50% ofthe material consumed, do not form part of total turnoverfor calculating deduction u/s 80HHC of the Income TaxAct?” We have heard learned counsel for the parties and haveperused the record. It is not disputed by learned counsel for the parties that the controversy raising the aforesaid question stands concluded bythe decision of this Court in Income-tax Appeal No. 31 of 2002(Commissioner of Appeal vs. Bicycle Wheels (India), decided on11.10.2010, wherein it has been held that the sale of scrap shall formpart of the total turn-over for calculation of deduction that would beavailable to the assessee under Section 80HHC of the Act. In view of the above, the appeals are allowed. Thesubstantial question of law as noticed above is answered in favour ofthe Revenue. (AJAY KUMAR MITTAL) JUDGE *rkmalik* (ADARSH KUMAR GOEL) JUDGE