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TMI Blog2015 (1) TMI 245X X X X Extracts X X X X X X X X Extracts X X X X ..... able to the industrial undertaking and not the the assessee and prior to having been over by the assessee, the plant and machinery valuing ₹ 6,92,397/- was in fact never used by the earlier owner viz. Harsidh Specific Family Trust – thus, the Tribunal has rightly observed that the plant and machinery were never used by the earlier owner, therefore, the assessee is entitled to grant deduction u/s 80I – the order of the Tribunal is upheld – Decided against revenue. - TAX APPEAL NO. 32 of 2001 With TAX APPEAL NO. 33 of 2001 With TAX APPEAL NO. 34 of 2001 - - - Dated:- 25-11-2014 - MR. KS JHAVERI AND MR.K.J.THAKER, JJ. FOR THE APPELLANT : MRS MAUNA M BHATT, ADVOCATE FOR THE RESPONDENT : MR SN SOPARKAR, ADVOCATE JUDGEME ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ome Tax Appellate Tribunal. The Tribunal after hearing both the parties and after considering the evidence on record has partly allowed the appeals of the assessee. Hence, this appeals are filed at the instance of the revenue. 5. In all these appeals the Court has formulated the following substantial question of law: Whether the appellate Tribunal has substantially erred in law in holding that the assessee is entitled to deduction under Section 80I of the Income Tax Act. 6. Learned counsel for the appellant-revenue has submitted that the Tribunal has committed error in deleting the addition and holding that the assessee is entitled to deduction u/s. 80I of the Income Tax Act. He further submitted that the Tribunal ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... etergents had not set up any business by the previous owner M/s. Harsidh Specific Family Trust who had only purchased some amount of the new plant and machinery intending to start a new undertaking for manufacture of detergent power in the city of Ahmedabad. It was not even set up during the existence of the partnership for a brief period. Additional quantities of plant and machineries were purchased by the appellant trust after it took over the unstated business of Harsidh Detergents and with the help of all these new machineries, it started manufacturing activities in A.Y. 1985 from which it earned very substantial profit out of substantial turnover of ₹ 36 crores approximately. I agree with the A.R. That the previous owner M/s. Har ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... entral Governments located in the Industrial estates and deduction under the appropriate sections of the Income Tax Act are allowed to these undertakings. Therefore, there is no reason to deny the claim if the appellant hired a shed and other infrastructural facilities from a sister concern for starting a new industrial undertaking. In view of these reason, the appellant trust is entitled to deduction u/s 80I. 15.4. After taking into consideration the rival submissions we do not find any good ground to differ with the reasoning and conclusion of the CIT(A) as recorded in para-23 of his order for A.Yr. 1987-88 which we have reproduced above because deduction u/s. 80I is available to the industrial undertaking and not the the assessee ..... X X X X Extracts X X X X X X X X Extracts X X X X
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