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TMI Blog2015 (3) TMI 649X X X X Extracts X X X X X X X X Extracts X X X X ..... ion under Section 80-IA assessee has to satisfy that Industrial undertaking must be set up on or after 01.04.1991 and before 31.03.1995.Industrial undertaking is not formed by splitting up or reconstruction of a business already in existence (subjected to certain other conditions as specified in Section 80-IA.)The transferred assets of old business should not exceed 20% of the total value of the machinery or plant used in the new business. & It should not manufacture or produce articles specified in the Eleventh Schedule. The records placed for perusal show that the assessee has not fulfilled the above conditions and therefore, the Assessing Officer and the Appellate Authority had rightly disallowed the benefit. The Tribunal without any ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... efore, it was not chargeable for the capital gain tax. 2. The assessee - M/s.B.P.C.Desai was a proprietary concern and later on, it was converted into a Private Limited Company under the name and style M/s.Industrial Hydraulics Pvt. Ltd. For the assessment year 1995-1996, return was filed under Section 143(1)(a) of the Act by the assessee claiming deduction under Section 80-IA. The Assessing Officer passed an order under Section 154 of the Act on 12.08.1996 rejecting the relief under Section 80-IA. The said order was challenged before the appellate authority and the appellate authority, by order dated 19.03.1997, set aside the order of the Assessing Officer. Thereafter, the Assessing Officer has issued notice under Section 148 of the A ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... and 1997-1998 before the Tribunal. 4. The Tribunal after considering the material on record came to the conclusion that the unit established in Shed No.C-54 was a 'new unit' and the assessee was manufacturing hydraulic products of higher capacity and different sizes from the assessment year 1995-96 and therefore, the assessee was entitled for deduction under Section 80-IA of the Act pertaining to this manufacturing unit during the relevant assessment year. 5. The revenue being aggrieved by the order passed by the Tribunal has filed this appeal by framing substantial questions of law. 6. Learned counsel for the revenue submits that this Court while dealing with similar orders has framed the following substantial question of ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... uction under Section 80-IA of the Act, assessee has to satisfy the following requirements: i) Industrial undertaking must be set up on or after 01.04.1991 and before 31.03.1995. ii) Industrial undertaking is not formed by splitting up or reconstruction of a business already in existence (subjected to certain other conditions as specified in Section 80-IA.) iii) The transferred assets of old business should not exceed 20% of the total value of the machinery or plant used in the new business. iv) It should not manufacture or produce articles specified in the Eleventh Schedule. 10. The records placed for perusal show that the assessee has not fulfilled the above conditions and therefore, the Assessing Officer and the Appellate A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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