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2015 (5) TMI 364 - AT - Income TaxDisallowance of wrong claim of deduction u/s 80IB - CIT(A) deleted disallowance - whether Unit-2 & Unit-3 were not separate and independent industrial undertakings and it was the case of extension of business of Unit-1 for which deduction u/s 80IB of the Act is not available being eleventh year of operation u/s 80IB of the Act? - Held that:- It should be a new and identifiable undertaking separate and distinct from the existing business. There must be a emergence of a physical separate industrial unit which may exist on its own as a viable unit. The said condition has been fulfilled in the case of M/s. FIL Industries Ltd. (2012 (7) TMI 188 - ITAT AMRITSAR ) and in the present case. Further in the case of M/s. FIL Industries Ltd. (supra) the deduction u/s 80IB was allowed in the initial years to both the units. Likewise in the case of the assessee, 100% deduction was allowed u/s 80IB for first five years and then 25% was allowed till assessment year 2012-13 except in the impugned year. In the case of M/s. FIL Industries Ltd. (supra) reliance has been placed on the decision of the Hon'ble Gujrat High Court in the case of CIT vs. Saurashtra Cement and Chemical Industries Ltd. reported in [1979 (2) TMI 21 - GUJARAT High Court], where the said findings have been reproduced hereinabove. In the facts and circumstances, we find that the facts in the present case are also similar to the case in the case of M/s. FIL Industries Ltd. (supra) as far as allowance of deduction u/s 80IB is concerned. Therefore, we find no infirmity in the order of the ld. CIT(A), who has rightly followed the decision of the ITAT, Amritsar in the case of M/s. FIL Industries Ltd. (supra) and has rightly allowed the claim of the assessee. - Decided in favour of assessee.
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