Income Tax Appeal No. 205 of 2006 1 IN THE HIGH COURT OF PUNJAB AND HARYANA AT CHANDIGARH. --- Income Tax Appeal No. 205 of 2006 Date of decision: 1.12.2010 The Commissioner of Income Tax Panchkula --- Appellant Versus M/s. Sunil Chirag & Co. Jagadhari --- Respondent CORAM: HON’BLE MR. JUSTICE ADARSH KUMAR GOEL HON’BLE MR. JUSTICE AJAY KUMAR MITTAL --- Present: Mr. Yogesh Putney, Senior Standing Counsel for the appellant. Mr. B.R. Gupta, Advocate for the respondent. --- AJAY KUMAR MITTAL, J. This order will dispose of eight appeals, namely, Income Tax Appeal Nos., 154, 155, 205 to 209 of 2006 and 235 of 2007 as a similar issue is involved therein In Income Tax Appeal No. 205 of 2006 filed under Section 260A of the Income-Tax Act, 1961 (for short “the Act”) by the Revenue against the order dated 8.9.2005, passed by the Income Tax Appellate Tribunal Chandigarh Bench ‘A’, Chandigarh (in short “the Tribunal”) in ITA No. 790/CHANDI/2004, relating to the Income Tax Appeal No. 205 of 2006 2 assessment year 2000-2001, the following substantial question of law has been claimed by the Revenue for determination of this Court: “Whether on the facts and in the circumstances of the case, the learned ITAT was right in law in holding that the sales of brass scrap which constitute more than 50% of the material consumed, do not form part of total turnover for calculating deduction u/s 80HHC of the Income Tax Act?” We have heard learned counsel for the parties and have perused the record. It is not disputed by learned counsel for the parties that the controversy raising the aforesaid question stands concluded by the decision of this Court in Income-tax Appeal No. 31 of 2002 (Commissioner of Appeal vs. Bicycle Wheels (India), decided on 11.10.2010, wherein it has been held that the sale of scrap shall form part of the total turn-over for calculation of deduction that would be available to the assessee under Section 80HHC of the Act. In view of the above, the appeals are allowed. The substantial question of law as noticed above is answered in favour of the Revenue. (AJAY KUMAR MITTAL) JUDGE (ADARSH KUMAR GOEL) December 1, 2010 JUDGE *rkmalik*