TMI Blog2001 (6) TMI 26X X X X Extracts X X X X X X X X Extracts X X X X ..... ness which was being run by an American company, Chesebrough Ponds Inc. The American company had been carrying on business in India by manufacturing and marketing cosmetic products. That same business was continued by the assessee with the aid of plant and machinery that had been owned by the American company and additions made thereto by the Indian-company. The products manufactured remained th ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... pro motion incurred by the assessee, for the purposes of the business of such undertaking, in the previous year in which such undertaking begins to manufacture or produce such articles and each of the two previous years immediately succeeding that previous year." The section refers to an assessee who has "set up" an industrial undertaking. Such undertaking should be one for the manufacture or pr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ral years prior to the formation of the assessee-company which had continued the business that had already been set up, it cannot be said that the assessee had "set up" an industrial undertaking. The words 'set up' in the context in which they are used refer to an industrial undertaking which commenced manufacture in the year in which the claim for deduction is made or had commenced such manufactu ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... section can be extended to a new product and the expenses incurred on advertisement by the industrial undertaking in respect of its new product would come within the purview of section 37(3D). That decision is not of any assistance for the purpose of deciding the question which requires our consideration here. The Tribunal was dearly in error in taking the view that it did and the question refe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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