Tribunal held that scrap consisted of empty drums, off -cuts ,trims, coils , leftovers ,packing material , gatta , scrap rolls etc , which were generated in the course of the business . Accordingly the income derived from the business and eligible for deduction . Followed CIT v Sadu Forgings Ltd (. ) 336 ITR 444 ( Delhi) (HC) ( ITA No. 3936/Del/2017 dt .4-9- 2020 ( AY. 2012-13)
Isolloyd Engineering Technologies Ltd v DCIT ( 2020) BCAJ- October -P. 37 ( Delhi ) (Trib)
S. 80IC : Special category States – Scrap – Sale of scrap is part of business income – Eligible for deduction .