COMMISSIONER OF INCOME TAX Vs. JIKAR A. SAIYED

JUDGEMENT

(1.) Feeling aggrieved and dissatisfied with the impugned judgment and order dated 02.03.2007 passed by the learned Income Tax Appellate Tribunal (hereinafter referred to as the "ITAT") in ITA No. 2816/AHD/2003 for AY 2001-02, the revenue has preferred the present Tax Appeal to consider the following substantial question of law.

(2.) Heard Shri Sudhir Mehta, learned advocate for the revenue and Shri B.D. Karia, learned advocate appearing for Shri R.K. Patel, learned advocate for the assessee.

(3.) The short question which is posed for consideration of this Court is whether on the facts and circumstances of the case and in law the Appellate Tribunal is right in holding that the deduction under Section 80IB is allowable from the income from sale of scrap? It is also required to be noted at this stage that while passing the impugned judgment and order, the learned ITAT has relied upon the decision of the jurisdictional High Court in the case of Harjivandas Juthabhai Zaveri . In the case of Harjivandas Juthabhai Zaveri while answering the question whether the Appellate Tribunal is right in law and on facts in allowing deduction under Section 80IB of the Act on the items (i) Job work receipt, (ii) sale of empty soda ash bardana, (iii) sale of empty barrels and (iv) sale of plastic waste. The Division Bench has observed and held as under: