Allowing the appeal of the assessee the Court held that, slag generated during process of manufacturing of pig iron was part of manufacturing process and was a by-product of pig iron and, thus, profits earned from sale of such by-product was to be considered as part of profits derived from business of industrial undertaking engaged in manufacture and sale of pig iron and would be eligible for deduction. (AY. 2004-05)
Sesa Industries Ltd. v. CIT (2019) 415 ITR 257 / 264 Taxman 95/ 180 DTR 25/ 309 CTR 380 (Bom.)(HC)
S. 80IB : Industrial undertakings-Profit from sale of slag, which was a by-product in manufacture of pig iron, was to be considered as profit from business of industrial undertaking engaged in manufacture and sale of pig iron for purpose of deduction.