Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2011 (11) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2011 (11) TMI 448 - HC - Income TaxDeduction u/s 10A - denial as unit was set up by reconstruction of the assessee's business and more than 20% of the P&M already available in the old establishment has been utilized for manufacturing in the STP unit - Held that:- The material produced would clearly show that there was no reconstruction of already existing business and all the assets purchased after 31.3.1996 are stated to be located at STP unit, electronic city, while the assets purchased upto 31.3.1996 are stated to be located in earlier establishment and are still there. Therefore, Tribunal rightly allowed the deduction u/s 10A. See Textile Machinery Corpn. Ltd. v. CIT (1977 (1) TMI 3 - SUPREME COURT) stating that How the end products are used is immaterial and in Addl. CIT v. Hutti Gold Mines Co. Ltd.(1981 (1) TMI 59 - KARNATAKA HIGH COURT)that The new industrial unit would not lose its separate and independent identity even though it has been set up by company which is already running an industrial unit before the setting up of the new unit - Decided in favor of assessee. Deduction of Provision for Doubtful Debts, Doubtful investments and doubtful advances while computing Book Profit u/s 115JB - Held That:- Apex court decided in case of HCL Comnet Systems & Services Ltd (2008 (9) TMI 18 - SUPREME COURT) that bad and doubtful debts can never be said to be liability and cannot be added up for computing the book profit u/s 115JA(2)(c) - decided in favor of assessee.
|