Held that the scrap was a by-product arising directly from the manufacturing process undertaken at the eligible unit of the assessee and, therefore, deduction under s. 80-IC is allowable qua income arising from the sale of scrap. Disallowance under s. 40(a)(ia) would form part of the eligible profits for the purpose of deduction under s. 80-IC.(AY. 2012-13, 2013-14, 2020-21 & 2022-23)
DCIT v. Reckit Benkiser Healthcare India (P) LTD. (2025) 237 TTJ 129 / 176 taxmann.com 573 (Ahd)(Trib)
S. 80IC: Special category States-Profits and gains derived from industrial undertaking-Income from sale of scrap-Scrap was a by-product arising directly from the manufacturing process undertaken at the eligible unit-Eligible for deduction-Disallowance under S. 40(a)(ia) would form part of the eligible profits for the purpose of deduction under s. 80-IC, allowable deduction. [S.40(a)(ia)]
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