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2017 (9) TMI 191 - HC - Income TaxDeduction u/s 80-IB - reconstruction of a business already in existence - fulfillment of the criteria of an industrial undertaking - Held that:- There is transfer of plant and machinery of the unit Shri Ram Flour Mills of M/s. M.C. Roller Flour Mills Limited to the assessee company. The plant and machinery of the said unit was in use by the previous company. Therefore, the assessee company is not an industrial undertaking formed by the purchase of a new plant and machinery rather than by the transfer of previously used plant and machinery. Thus, transfer may not have amounted to splitting or reconstruction of business already in existence. Nonetheless, it amounts to constituting a new industrial undertaking by the transfer of used plant and machinery. The purpose behind the deduction u/s 80-IB of the Act is to promote setting up of a new industrial undertaking by purchasing new plant and machinery , but in present case of assessee setting up of an industrial unit by purchase of old/used plant and machinery defeat the entire purpose of allowing deductions u/s 80-IB of the Act The conclusion is therefore is assessee does not fulfil the conditions for claiming decduction u/s 80-IB - Decided in favour of revenue.
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