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TMI Blog2014 (7) TMI 251X X X X Extracts X X X X X X X X Extracts X X X X ..... new unit - The old unit may stop functioning immediately or after sometime - If old unit runs parallel for some time and thereafter it stop functioning then it is not going to make any difference - carrying on the same business in the new unit or stoppage of business in the old unit cannot be a criteria to hold that it is a case of reconstruction of a business already in existence – thus, the assessee is entitled for the claim of deduction u/s 80IB of the Act – Decided in favour of Assessee. - ITA Nos. 1792 & 1793/Ahd/2011 - - - Dated:- 13-6-2014 - Sri D. K. Tyagi And Shri Anil Chaturvedi,JJ. For the Petitioner : Sri M. K. Patel , A.R. For the Respondent : Sri A. K. Pandey, Sr. D. R. ORDER Per : D. K. Tyagi, Judicia ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... planation 2 is not fulfilled. 5. Ld. CIT(A) confirmed this action of AO by observing as under:- 5.3 I have carefully considered the observation made by the AO in the assessment order as well as the contention raised by the A.R. Similar issue was decided by my predecessor ld. CIT(A) vide Appeal No. CIT(A)/VLS/134/2006-07 dated 3.01.2007 for the A.Y. 2005-06 wherein the ld. CIT(A) had dismissed the appeal upholding the findings of the AO in appellant s own case. The facts and circumstances being same in this year too, I am inclined to confirm the order of the AO. Thus, the appeal in this ground is dismissed. 6. Further aggrieved now the assessee is before us. 7. At the time of hearing learned counsel of the assessee submitted t ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... workers. A statement showing list of workers employed during the year is enclosed. d. Our industrial undertaking is located in a backward areas specified in the eighth Schedule to the Income Tax Act. Thus we satisfy all Inc conditions as required in section 80-1B. Further more we would like to bring before, your honor that.,... a. There is no transfer of any of the assets from the old unit to new unit, b. There was no transfer of plant machinery or any other manufacturing facilities from the old unit to new unit, c. All plants and machineries installed in the industrial undertaking are new. d. There was no transfer of business from the old unit to new unit. e. We have obtained all the required licenses and certificates fr ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ed below: It would be a case of reconstruction if at the same place where the already existing unit is functioning new/additional machinery/plant are installed or new capital is infused or certain modifications and alterations in the process for manufacturing the product is carried out and there is a continuity of the activities of the business in the same industrial undertakings. But where at a new location independent of the earlier existing unit, new plant and machinery are purchased and installed, new capital is invested then it would be a case of setting up of a new unit even though for carrying out the same business. The essential difference lies in change in location and installation of new infrastructure in the form of factory b ..... X X X X Extracts X X X X X X X X Extracts X X X X
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