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2019 (3) TMI 1547 - HC - Income TaxBenefit of exemption u/s 10B - undertaking a new one and not formed merely by transfer of plant and machinery from the lessor company? - whether lease could also be considered as a 'transfer' u/s 10B - HELD THAT:- The assessee-company was formed using 66.66% of the site, apart from the computers, work stations and machinery, used by STPL, for the very same purpose. The only difference is that it is leased out, instead of an outright transfer. In our view, lease could also be considered as a 'transfer' for the purpose of Section 10B(2). The argument of the assessee that the activity carried on by the company was manufacture of computer software, which requires input of intellectual, rather than tangible resources, is also not acceptable to us to find a dominant aspect not being involved in the transfer by lease of the premises, computers and peripherals. In the light of the above discussion, we are of the view that the Tribunal was justified in holding that the assessee is not entitled to the benefit under Section 10B(2) of the Act. - Decided against assessee.
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