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2022 (3) TMI 1360 - HC - Income TaxDeduction u/s 80-IC - assessee was not entitled to claim any benefit under Section 80-IC as Unit-III was not a new Unit and it was re-construction of an existing Unit-II - Appellate Authority held that the Assessing Officer had rightly held that the operation of Unit-III was nothing but an extension of operation of Unit-II - HELD THAT:- Assessing Officer was influenced by the fact that since Unit-III was being run by the assessee in its registered office, therefore, activities done in Unit-III were identical in nature to those done by Unit-II. The Assessing Officer had failed to appreciate that the building, where Unit-III had been started, had in fact been given on rent, whereas, Unit-II was being run in a separate building which was at a distance of about 7 kilometers. The building where the registered office was started in the assessment year 2009-10, was got vacated and thereafter Unit-III was started in the said premises in assessment year 2010-11. It was not a case where plant and machinery of Unit-II had been used for Unit-III. The business of the company had grown and with a view to expand its business, the company started a new Unit by making investment as shown in the Chart reproduced abve. New employees were recruited by the Assessee for Unit-III. Separate account books were maintained by Assessee qua Unit-II & Unit-III. Tribunal rightly came to the conclusion that the assessee was entitled to claim benefit under Section 80-IC of the Act by treating Unit-III of the assessee-company as a separate and distinct Unit - findings recorded by the Tribunal can neither be said to be perverse or result of misreading of evidence and material on record. The substantial question of law decided in favour of assessee.
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