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TMI Blog2018 (11) TMI 1787X X X X Extracts X X X X X X X X Extracts X X X X ..... . The Assessing Officer held that the assessee could not claim exemption under Section 10A of the Act due to violation of the conditions stipulated in Section 10A(2)(ii) & (iii) of the Act; that the assessee has split-up and reconstructed the business already in existence; that the new business has been formed out of the plant and machinery previously used for the purpose and hence a sum of Rs. 8,10,85,595/- was added back by the claim. On appeal, the order of assessment was set aside and relief under Section 10A of the Act was granted to the assessee. Aggrieved by the same, the Revenue preferred an appeal before the Tribunal. The same was dismissed. Hence, the present appeal in Income Tax Appeal 368 of 2010. 2. By order dated 25.05.2011 t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ince the year 1996-97. This is the 8th Year of operation of the assessee. It is only this year there has been a disallowance by the Assessing Officer under Section 10A of the Act. The High Court of Delhi in the aforesaid judgment held as follows : "We have already noted the factuel position. It is an accepted and admitted fact that the undertaking was formed or created by HICS and there is no allegation or finding by the Assessing Officer that on the date " of formation of the undertaking, there was violation of clause (ii) and (iii) of section 10B (2). The undertaking, when it was formed, satisfied and duly fulfilled the requirements of the said clauses, as it was not formed by splitting up or reconstruction of business already in existe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ot alter or increase the tax holiday period Of ten years. Therefore, the contention of the Revenue that if there is change of undertaking, tax holiday would stand restricted may not be correct. In so doing the earlier orders of the High Court of Madras in the case of Heartland KG Information Ltd. Reported in (2013) 359 ITR 1 (Mad) And Sonata Software Ltd. (2012) 343 ITR 397 (Bom) were affirmed. Keeping in mind the three judgments the substantial question of law requires to be answered in favour of the assessee and against the Revenue. The appeal is disposed off accordingly. INCOME TAX APPEAL 367 of 2010 The assessee herein is the very assessee as in Income Tax Appeal 368 Of 2010. 2. ITA 368 of 2010 was filed for the assessment yea ..... X X X X Extracts X X X X X X X X Extracts X X X X
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