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TMI Blog1980 (4) TMI 154X X X X Extracts X X X X X X X X Extracts X X X X ..... nd as of necessity. 3. The assessee made a claim for deduction under ss. 80HH and 80J of the IT Act, 1961 and on the facts as are reproduced below from the assessment order, the claim of the assessee was negatived. "Claim for deduction under ss. 80HH and 80J: The assessee company has claimed deduction of 20 per cent of the gross total income under s. 80HH in respect of profits and gains from newly established Industrial undertaking in notified backward areas. It has further claimed deduction under s. 80J of amounting to Rs. 27,545 at 6 per cent on Rs. 4,59,092. The claims are considered and rejected for the following reasons: The provisions of both ss. 80HH and 80J are applicable in the case of the Industrial Undertaking. Sec. 80HH ap ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the tune of approximately 76 per cent and the range of production also increased. Accordingly it is urged that the appellant should have been given the deduction claimed under s. 80HH and 80J. 5. The AAC on the above facts held as under: "The new machineries brought into use are Motor Generator Welding Sets, Vibrator, Winget Model Concrete Mixture powered by INDEC and Electrification. Similarly the new items manufactured by the appellant are Steel Windows, Rolling Shutters, Collapsible Gates, Grills and Civil Construction etc. Taking the overall position the appellant appears to have brought in only Addl. item for Civil Construction which cannot be specified as new industrial undertaking and for Welding and Fabrication. In view of all ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g machines, Shearing and cutting machines, Grinders, Welding machines, Pole swaging machine, concrete mixers and vibrators, tool room machineries and equipments etc., which machines were not being used by the assessee hitherto in his business. (v) that the assessee has changed the items of its manufacturing line and the new machinery was necessitated for these items. (vi) that the assessee has earned profits by way of the use of the said machinery as also by way of employment of fresh capital in the new premises, where the assessee has set up the new factory. 7. On the above facts, we are of the opinion that the ratio of the decision of the Punjab and Haryana High Court in the case of CIT, Patiala-II vs. Batala Engineering Co. Ltd.(1) ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... l, a separate and distinct identity of the industrial unit set up. The assessee-company which manufactured machine tools had a re-rolling mill also. The mill which was 30 years old had outlived its utility and was scrapped in June, 1962. The assessee installed a new mill purchased at a cost of Rs.5,10,781 which started functioning from 29th July, 1962. Alongwith certain other items like lathes, weighbridge, motors, and tools etc., the total cost of new machinery came to Rs. 6,10,020. Old machinery worth Rs. 1,07,034 was transferred from the old rolling mill and the total cost of the machinery thus came to Rs. 7,17,054. A new building worth Rs. 37,732 was constructed and the old building worth Rs. 16,239 was transferred to the new rolling ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... which the machinery was taken out was used for storage, and that, on the facts of the case, the new rolling mill set up by the assessee was not formed by the reconstruction of a business already in existence. On a reference at the instance of the Revenue: Held, that the Tribunal was right in holding that the assessee-company was entitled to the benefit of s. 84 of the Act." 8. The learned counsel for the assessee has not addressed us on any other score although he has taken very many grounds in the grounds of appeal filed for all the assessment years under appeal, as such, the orders of the lower authorities on the above scores (but for the claim of the assessee under s. 80HH and 80J of the Act) are upheld since all these grounds have n ..... X X X X Extracts X X X X X X X X Extracts X X X X
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