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2022 (4) TMI 811 - SC - Income TaxEntitlement to benefit of the provisions of Section 10B - Manufacture or production of articles yielding additional profit attributable to the new outlay of capital in a separate and distinct unit - tests which have been formulated in the decision of this Court in Textile Machinery Corporation Ltd [1977 (1) TMI 3 - SUPREME COURT] - whether the new industrial undertaking connotes expansion of the existing business of the assessee but whether it is all the same a new and identifiable undertaking separate and distinct from the existing business - HELD THAT:- In coming to the conclusion that the tests which have been formulated in the decision of this Court in Textile Machinery Corporation Ltd (supra) and reiterated in Indian Aluminium (1977 (1) TMI 5 - SUPREME COURT] have been duly fulfilled, the Tribunal has entered specific findings of fact that the new unit was fully a independent unit with a production capacity of 15 lakh tons per annum as compared to the earlier production capacity of 2 lakh tons per annum of the old unit. The Tribunal has also dealt with the reasons which were furnished by the CIT in coming to the conclusion that what was set up was only an expansion of the old unit and not a new unit. Ex facie, the reasons which weighed with the CIT were not compliant with the tests which have been formulated in the judgments of this Court. In this backdrop, the judgment of the Division Bench of the High Court of Bombay at Goa [2020 (10) TMI 1053 - B OMBAY HIGH COURT] affirming the judgment of the Tribunal does not suffer from any error. The Special Leave Petition is accordingly dismissed.
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