Home Case Index All Cases Income Tax Income Tax + HC Income Tax - 2015 (9) TMI HC This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2015 (9) TMI 331 - HC - Income TaxEntitlement to relief under Section 80IA in respect of new 650 TPK Kiln - ITAT denied claim - Held that:- There is no denial of the fact that by setting up a new Kiln, the maximum production capacity of the appellant was actually increased from what it was earlier. In other words, the activity undertaken by the appellant can, at best, be termed as one of expansion of an existing facility. Unfortunately for the Revenue, clause (i) of sub-section (2) of section 80 IA does not use the expression "expansion". To deny the benefit to the appellant, under clause (i) of sub-section (2), it should fall either under the category of "splitting up of existing unit" or under the category of "reconstruction of the existing unit". Both in the case of splitting up and in the case of reconstruction, there is no expansion. The expression "expansion", as such, is not used in clause (i).It is not the case of the Revenue that the case of the appellant is covered either by clause (ii) or that the appellant does not satisfy the conditions prescribed in any of the three clauses viz., (iii), (iv) or (v). Therefore, the presumption on the part of the respondent that the benefit under section 80 IA would not apply unless there is a new Undertaking is not traceable to sub-section (2). Clause (b) of sub-section (2) of section 80 IA defines an industrial undertaking to have the same meaning as assigned to it in the Explanation to section 33B. The case of the appellant certainly falls under the category of business of manufacture or processing of goods within the meaning of expression under the Explanation to section 33B. Therefore, the meaning to be assigned to the expression "industrial undertaking" as appearing in section 80 IA also stands satisfied in this case. - Decided in favour of the assessee
|