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2016 (3) TMI 686 - CALCUTTA HIGH COURTEligibility of deduction under section 80I - ITAT held that as Industrial Undertaking of the assessee during the assessment year 1989-90 situate at Rishra was not eligible for the benefit under Section 80I - Held that:- The object of introducing section 80I was to encourage the entrepreneurs to set up industry. If the meaning or interpretation given by Mr. Agarwal is to be accepted, that would mean that an industrial undertaking cannot seek to derive the advantage of section 80I by fulfilling the conditions set out in sub-section (2) of section 80I; whereas the object according to us is that the benefit shall be given to an industrial undertaking which fulfills the conditions set out in subsection (2). The assessee in this case does fulfill that condition and there is no dispute with regard thereto. In the present case, the transfer is less than 20% of the total value of the machinery installed in the Konnagar plant. Therefore the prohibition does not operate against eligibility of the assessee to claim deduction. The Tribunal has erroneously denied the benefit of Section 80I to the assessee on the ground that the Industrial Undertaking of the assessee during the assessment year 1989-90 situate at Rishra was not eligible for the benefit under Section 80I. But that ground, according to us, is no reason to deny the benefit in the subsequent years when the assessee has set up a new plant at a different place and also fulfills all the terms and conditions laid down in sub-section (2) of Section 80I.- Decided in favour of the assessee.
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