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2014 (5) TMI 1004 - HC - Income TaxSettlement commission - deduction u/s 80IB - Material placed by the CIT under Rule 9 not considered – Held that:- The contention of the revenue cannot be accepted that Settlement Commission had not examined and overlooked the material placed before the Settlement Commission in support of their contentions that the respondent was not entitled to the deduction under Section 80-IB of the said Act - the new unit should not have been made by splitting up or reconstructing an already existing business - the new business should not have been formed by transfer if the plant or machinery which had been previously used for the purpose - Insofar as these conditions are concerned, there is no material to show that they have not been satisfied. There is evidence of the fact that the AO, in respect of the AY 2005-06, 2006-07 and 2007-08, has allowed the deduction u/s 80-IB of the Act - The presumption is that an AO is aware of the conditions stipulated in sub-section (2) of Section 80-IB of the Act and that those conditions have been met - It is his duty to do so - the AO allowed the deduction u/s 80-IB of the Act for the three AY- 2005-06, 2006-07 and 2007-08 - he had checked and verified that the conditions stipulated in Section 80-IB (2) had been satisfied - There is nothing on record to rebut this presumption - it cannot be contended that the conclusion arrived at by the Settlement Commission that the respondent was entitled to the deduction u/s 80-IB of the Act was arbitrary or perverse – thus, there was no reason for interference in the order of the Settlement Commission – Decided against Revenue.
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