The Tribunal held that the scrap materials came into being during the manufacturing process of the industrial undertaking in the manufacture of certain products. The scrap materials had a saleable value. Profits and gains from the sale of scrap materials were eligible to deduction in an amount equal to twenty per cent. under section 80-IC of the Act, inasmuch as such gains or profits were derived from the industrial undertaking and includible in the gross total income of the assessee. ( AY.2010-11, 2011-12)