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TMI Blog2018 (11) TMI 1896X X X X Extracts X X X X X X X X Extracts X X X X ..... ompany has also not only shown tremendous growth in business but has also demonstrated that it has been dealing with and attracting new clients and servicing in new products. We do not find any justification on the part of the lower authorities in denying the claim of the assessee by assuming that Unit-III was not a new unit or that it was started by way of spitting or reconstruction of an existing unit. The orders of the lower authorities are therefore, set aside and the Assessing officer is directed to give relief to the assessee as per the provisions of section 80IC of the Act treating the Unit-III as a separate and distinct unit. The appeal of the assessee is hereby allowed. - ITA Nos. 427 & 428/CHD/2018 (Assessment Years : 2013-14 & ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ness of Information and Communication Technology since assessment year 2006-07. The assessee claimed deduction u/s 80IC of the Income-tax Act, 1961 (in short 'the Act') in respect of its two units namely Unit-II and Unit- III. For the Unit-2, the assessee took the initial assessment year as 2006-07 and for Unit-3, the initial assessment year for claiming exemption u/s 80IC of the Act was taken as assessment year 2010-11. The Assessing officer, however, observed that the business operation of the assessee company at both the business premises (Unit II Unit III) was identical and further that Unit III was carrying out its operation at the registered office of the Company which was of Unit No. II also, hence, it amounted spitting ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t year 2009-10. The necessary registration and approval were obtained and new Unit-III was started at the said premises, the operation of which had commenced in assessment year 2010-11 with new employees and new plant machinery. The Ld. Counsel for the assessee has demonstrated that Unit-II and Unit-III were being operated from separate buildings with separate employees, separate clientage and separate sale tax registration numbers and separate registration with District Industries Centre, as given in the following charts:- 5. It has been further explained that the clientage and project being serviced from Unit-III were fresh, the company earlier was giving services in relation to the one product i.e. Voice Chat to its clines ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... plit out or reconstructed out of Unit-II. There is no allegation that the plant and machinery of Unit-II has been used for Unit-III. Moreover, the assessee company has also not only shown tremendous growth in business but has also demonstrated that it has been dealing with and attracting new clients and servicing in new products. In view of this, we do not find any justification on the part of the lower authorities in denying the claim of the assessee by assuming that Unit-III was not a new unit or that it was started by way of spitting or reconstruction of an existing unit. The orders of the lower authorities are therefore, set aside and the Assessing officer is directed to give relief to the assessee as per the provisions of section 80IC ..... X X X X Extracts X X X X X X X X Extracts X X X X
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