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2004 (12) TMI 18 - ALLAHABAD HIGH COURTAdmissibility of deduction under sections 80J and 80HH - HELD THAT:- Learned counsel for the Revenue submitted that u/s 80J(4)(i) and 80HH(2)(ii) the requirement is that the unit should not have been formed by the splitting up or the reconstruction of a business already in existence. According to him as the business which was carried on earlier by the respondent in the form of a partnership firm for manufacturing black steel tubes of 2 inches diameter set up a new project No. 2 for manufacturing of 4 inches diameter pipes by converting into a private limited company it amounts to splitting up or reconstruction of a business already in existence and, therefore, the respondent is not entitled to claim the benefit under sections 80J and 80HH. The Tribunal has found that the respondent has set up a new project for manufacturing of 4 inches diameter black pipe which is different from manufacturing 2 inches diameter black pipe by the respondent. Merely because some of the facilities are common that will not mean reconstruction or splitting up. We are of the considered opinion that the Tribunal has correctly applied the principle laid down by the apex court in Textile Machinery Corporation Ltd. [1977 (1) TMI 3 - SUPREME COURT] and accordingly answer the questions referred to us in the affirmative, i.e., in favour of the assessee and against the Revenue. However, there shall be no order as to costs.
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