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TMI Blog2016 (3) TMI 498X X X X Extracts X X X X X X X X Extracts X X X X ..... under the category of “Substantial Expansion” of the unit and hence we are of the view that the provisions of sec. 80IC(4) shall not come in the way of the assessee in claiming deduction u/s 80IC of the Act. - Decided in favour of assessee - I.T.A. No.8721/Mum/2011 - - - Dated:- 3-2-2016 - SHRI B.R.BASKARAN, AM AND AMARJIT SINGH, JM For The Appellant : Shri K Gopal For The Respondent : Shri Ganesh Bare ORDER Per B R Baskaran, AM: The assessee has filed this appeal challenging the order dated 28.10.2011 passed by Ld CIT(A)-39, Mumbai for assessment year 2008-09 confirming the order of the AO rejecting the claim for deduction u/s 80IC made by the assessee. 2. The facts relating to the issue are stated in brief ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... under in sec. 80IC(8)(ix) of the Act as under:- Substantial expansion means increase in the investment in the plant and machinery by at least fifty percent of the book value of plant and machinery (before depreciation in any year), as on the first day of the previous year in which the substantial expansion is undertaken. The Ld A.R submitted that the book value of Plant and Machinery that were available with the assessee as on 1.4.2007 was ₹ 30.50 lakhs and the assessee has invested a sum of ₹ 103.17 lakhs in purchasing of new machineries during the financial year 2007-08 relevant to the assessment year 2008-09. Accordingly, the Ld A.R submitted that the assessee has complied with the definition of Substantial Expa ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Park, as notified by the Board in accordance with the scheme framed and notified97 by the Central Government in this regard, in the State of Sikkim; or (ii) on the 7th day of January, 2003 and ending before the 1st day of April, 2012, in any Export Processing Zone or Integrated Infrastructure Development Centre or Industrial Growth Centre or Industrial Estate or Industrial Park or Software Technology Park or Industrial Area or Theme Park, as notified by the Board in accordance with the scheme framed and notified96 by the Central Government in this regard, in the State of Himachal Pradesh or the State of Uttaranchal; or (iii) on the 24th day of December, 1997 and ending before the 1st day of April, 2007, in any Export Processing Zone ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sessee of the business of any such undertaking as is referred to in section 33B, in the circumstances and within the period specified in that section; (ii) it is not formed by the transfer to a new business of machinery or plant previously used for any purpose. Explanation.-The provisions of Explanations 1 and 2 to sub-section (3) of section 80-IA shall apply for the purposes of clause (ii) of this sub-section as they apply for the purposes of clause (ii) of that sub-section. A careful perusal of the above said provisions would show that the deduction under this section shall be available to any undertaking or enterprise which manufactures or produces any article or thing, not being any article or thing specified in the Thirteenth ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... at the assessee has set up a new undertaking at a new place and in that process it has used certain old plant and machinery also. He submitted that the provisions of sec. 80IC also provide for using of old Plant and Machinery up to a certain limit. Accordingly he submitted that the new undertaking set up at Baddi cannot be considered as reconstruction of the unit. He submitted that the assessee has claimed deduction u/s 80IC of the Act in view of substantial expansion of the unit and not on account of setting up of the unit. 9. We find merit in the said submissions of the Ld A.R. We have earlier noticed that the assessee qualifies under the category of Substantial Expansion of the unit and hence we are of the view that the provisions o ..... X X X X Extracts X X X X X X X X Extracts X X X X
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