Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2011 (3) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (3) TMI 1063 - ITAT HYDERABADDeduction u/s 10B - unexpired period - Held that:- According to the facts of instant case, the assessee company is only a lessee, having a right to enjoy the plant and machinery. Owning the plant and machinery and taking plant and machinery on lease are two different things - Ownership is a bundle of rights - Lease-hold rights are a part of bundle of rights in the ownership - in the present case the assessee company is not a successor to the lessor. In order to decide the eligibility of the assessee company to claim under section 10B it is required to be seen that whether the undertaking transferred to the assessee company, on lease basis, can be said to be a new undertaking - Exemption is applicable only to an absolutely new undertaking started for the first time - Unless the assessee who claims the benefit under section 10B for the unexpired period, establishes that it is a successor of a lessor, and it fulfils all other necessary conditions in each year, it cannot claim of benefit under section 10B of the Act for the balance unexpired period - Decided against the assessee.
|