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2011 (11) TMI 631 - AT - Income TaxClaim of deduction under section 10A in respect of Unit-B primarily - whether the said Unit is neither separate and nor has a distinct identity but was a mere expansion of the existing business - Held that:- Approach of the Assessing Officer is untenable, inasmuch as on facts and in law, as succinctly brought out by the Commissioner of Incometax (Appeals), Unit-B is entitled to be understood as a separate and independent Unit for the purpose of claiming deduction under section 10A of the Act. Moreover, in the course of hearing before us, the learned Counsel for the respondent-assessee pointed out that even after the expiry of tax holiday period of 10 years in Unit-A, the activities and profits of Unit-A have shown positive growth and this itself shows that there was no intention to claim separate deduction for Unit-B merely for the purposes of enjoying tax holiday. The aforesaid plea has not been controverted before us. Considering the totality of circumstances, in our view, the Commissioner of Income-tax (Appeals) rightly dis-agreed with the apprehension of the Assessing Officer on this matter and has correctly upheld the assessee’s claim for treating Unit-B as a separate and independent Unit for the purposes of claim of deduction under section 10A of the Act. In this view of the matter, we, therefore, find no merit in the Ground of appeal raised by the Revenue and the same is dismissed accordingly. Incomes by way of sales-tax refund, liabilities no longer required written back and Profit on sale of assets are eligible incomes for computing deduction under section 10A of the Act for Unit-A
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