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2014 (7) TMI 251 - AT - Income TaxDeduction on profits and gains u/s 80IB of the Act –Industrial undertaking formed by reconstruction of business – Held that:- The decision in assessee’s own case for the earlier assessment year followed, the unit has not been formed either by splitting up or by reconstruction of a business - There was a new independent location where new plant and machinery was stated to be installed - Whether the assessee carried the same business or different business was of no consideration as it was done by the revenue authorities - the AO has molded the facts and stated that the old unit was closed down consequently given birth to a new unit - The old unit may stop functioning immediately or after sometime - If old unit runs parallel for some time and thereafter it stop functioning then it is not going to make any difference - carrying on the same business in the new unit or stoppage of business in the old unit cannot be a criteria to hold that it is a case of reconstruction of a business already in existence – thus, the assessee is entitled for the claim of deduction u/s 80IB of the Act – Decided in favour of Assessee.
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