INCOME TAX ACT, 1961

Section 80-IA

Deduction under section 80-IA - Allowability - Sale of scrap and sundry revenue - Assessee engaged in managing, developing and maintaining infrastructural facilities of

Assessee engaged in managing, developing and maintaining infrastructural facilities of container port claimed deduction under section 80-IA as regards sale of scrap and sundry revenue.Held: As far as income from sale of scrap and sundry revenue was concerned, assessee was not into manufacturing activity. It was engaged into business activities of managing developing and maintaining infrastructural facilities of the port. Items of burnt oil, empty barrel, used filter, used spare and sludge oil were items which would be discards of the users of port and ships. Such discards were to be cleaned or appropriately dumped. Assessee in the process of maitaining infrastructural facilities, sold such discards and earned this income from so called scale of scrap and sundry revenue and these items did not qualify for deduction under section 80-IA as same could not be considered to be in the nature of income derived from industrial undertaking.

Followed:Liberty India v. CIT, [2009] 317 ITR 218 (SC) : 2009 TaxPub(DT) 2027 (SC)

REFERRED :

FAVOUR : Against the assessee.

A.Y. :

INCOME TAX ACT, 1961

Section 92C

SUBSCRIBE FOR FULL CONTENT