Sale of Scrap not includible in Total Turnover or Local Turnover as It is not assessee’s Main Business: ITAT [Read Order]

Supreme Court -

The Income Tax Appellate Tribunal (ITAT) in the case of Universal Precision Screws Vs. JCIT wherein held that the amount of sale of scrap is not includible in the total turnover or local turn over as the Assessee is not in the scrap business.

In instant case by considering the Assessee’s own case in the tribunal which was assured by High court, the Assessing Officer and First Appellate Authority viewed that the scrap sale is not includible in turn over as well as total turn over while computing the deduction under Section 10B of the Income Tax Act.

According to the aforesaid case, bench pressed the judgment of the Supreme Court in CIT v. Punjab Stainless steel industries wherein held that sale of scrap is not includible since the main business of Assessee is not scrapped business.

The New Delhi ITAT bench comprising President G.D Agrawal and Judicial Member Kuldip Singh accordingly held that since Assessee is not engaged in the business of Scrap then the sale of scrap is not includible in the total turnover or local turnover.

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