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2010 (4) TMI 827 - AT - Income TaxDeduction under section 80-IB - transfer of undertaking - constitution of the assessee-firm change by admission of a partner - claim of deduction declined by the Assessing Officer on the plea that there was a transfer of plant and machinery already in use in the business of proprietorship firm - On the conversion of proprietorship firm into partnership firm - Held that:- there was no transfer of plant and machinery to the new firm but it was transfer of the industrial undertaking as a whole along with all the assets and liabilities. Neither there was any splitting up nor reconstruction of business already in existence, but it was a case of change in the constitution of the same industrial concern which continued to manufacture the same item even after admission of a partner. Thus, both conditions which disqualify the deduction are not present in the instant case. We, therefore, do not find any infirmity in the order of the Commissioner of Income-tax (Appeals) allowing claim for deduction under section 80-IB for the remaining period of its eligibility, appeal filed by the Revenue is dismissed.
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