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2008 (3) TMI 432 - HC - Income TaxIndustrial undertaking- Special Deduction- The assessee claimed deduction under section 80-IA(4)(i) of the Act in respect of profits. The Assessing Officer disallowed the claim for deduction on the ground that there was no agreement by the assessee with the Government of Rajasthan in supersession of the original agreement between the government of Rajasthan and the firm. The Commissioner (Appeals) confirm the action of the Assessing Officer. The Tribunal held that the assessee was entitled to deduction as there was statutory vesting of liabilities and assets of the firm in the company and the agreement mentioned firm to mean and include successors and assigns. Held that- there was statutory transformation of the firm into the company which came into effect since March 28, 2000 by operation of law. The assessee fulfilled all the requirements of section 80-IA(4)(i). Even from the agreement entered into by the firm with the Government of Rajasthan the company as successor of the firm was entitled to the benefit of deduction. The assessee was entitled to deduction in terms of the proviso to section 80-IA(4)(i) of the Act.
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