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TMI Blog2024 (1) TMI 381X X X X Extracts X X X X X X X X Extracts X X X X ..... for the Assessment Year 2014-15 and against the order of Ld.CIT(A)-8, New Delhi dated 28.01.2020 for the Assessment year 2016-17. The appeals are taken up together for hearing and are being disposed off by way of consolidated order for the sake of brevity and convenience. ITA No.7568/Del/2018 [Assessment Year : 2014-15] 2. First, we take Revenue s appeal in ITA No.7568/Del/2018 [Assessment Year 2014-15] wherein Revenue has raised following grounds of appeal:- 1. Whether on the facts and circumstances of the case, the Ld.CIT(A) was justified in holding that the assessee is eligible for benefits within the meaning of section 10AA of the I.T. Act, 1961 with regard to units at Chennai and at Coimbatore SEZ despite the fact that assessee has not satisfied the conditions mentioned u/s 10AA(4) of the I.T. Act, 1961. 2. The appellant craves leave to add, alter or amend any of the ground(s) of appeal before or during the course of hearing of the appeal. 3. The only effective ground raised by the Revenue in this appeal is against the eligibility of benefit u/s 10AA of the Income Tax Act, 1961 ( the Act ). 4. Facts in brief are that the assessee company e-filed ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ny named AXA Business service Ltd. Thus, it is clear that the assessee company violated the conditions laid down for claiming deduction u/s 10AA. 5.4. The AO is of the view that fixed assets valuing to Rs. 40,72,127/- were transferred to the appellant from an existing business entity- M/s AXA Business Service Ltd. The AO has inferred that these old fixed assets were used (finding mention in the audited balance sheet at para 2.24) in the formation of new SEZ Units at Chennai and at Coimbatore. However, the AO has not specified as to how and what all assets were used in the two new SEZ undertakings. The appellant has pointed out that the assets of the value of Rs. 40,72,127/- were acquired as part of running business unit of M/s AXA Business Service Pvt. Ltd vide agreement dated 13.04.2012. Para 3.5 of this agreement dated 13.04.2012 reads as follows- 3.5. Subject to the provisions of this Agreement, the Purchaser hereby agrees to purchase and the Vendor hereby agrees to sell, assign, transfer and convey to the Purchaser on the Transfer Date (in the manner and to the extent indicated in Clause 3.7), the Business, free from all Encumbrances, as a slump rate of a going conc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... asis also the appellant cannot be denied eligibility for the purposes of section 10AA of the IT. Act, 1961. 5.7. In light of the aforesaid analysis, I hold that the appellant with regard to units at Chennai and at Coimbatore SEZ is eligible for benefits within the meaning of section 10AA of the IT. Act, 1961. Accordingly grounds 3, 3.1. 3.2 and 3.3 are adjudicated in favour of the appellant. 9. Thus, on the basis of precedence as available, in the form of my own appeal order for A.Y. 2013-14, I adjudicate this issue in favour of the appellant. 8. In view of the finding of Ld.CIT(A), even if it is assumed that existing plant machinery was used at Chennai SEZ or Commercial SEZ even then the value would be lower than 50%. This finding is not controverted by the Revenue. Therefore, we do not find any merit in the appeal of the Revenue, the same is hereby dismissed. Grounds raised by the Revenue are accordingly, dismissed. 9. In the result, the appeal of the Revenue is dismissed. ITA No.1068/Del/2020 [Assessment Year : 2016-17] 10. Now, we take Revenue s appeal in ITA No.1068/Del/2020 [Assessment Year 2016-17] wherein Revenue has raised following grounds ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ssets valuing to Rs. 40,72,127/- were transferred to the appellant from an existing business entity- M/s AXA Business Service Ltd. The AO has inferred that these old fixed assets were used (finding mention in the audited balance sheet at para 2.24) in the formation of new SEZ Units at Chennai and at Coimbatore. However, the AO has not specified as to how and what all assets were used in the two new SEZ undertakings. The appellant has pointed out that the assets of the value of Rs. 40,72,127/- were acquired as part of running business unit of M/s AXA Business Service Pvt. Ltd vide agreement dated 13.04.2012. Para 3.5 of this agreement dated 13.04.2012 reads as follows- 3.5. Subject to the provisions of this Agreement, the Purchaser hereby agrees to purchase and the Vendor hereby agrees to sell, assign, transfer and convey to the Purchaser on the Transfer Date (in the manner and to the extent indicated in Clause 3.7), the Business, free from all Encumbrances, as a slump rate of a going concern, at and for an aggregate purchase price of INR 105, 000, 000 (Purchase Price ) (Rupees One Hundred Five Million Only). Such Purchase Price to be reduced with the Working Capital as deter ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d to units at Chennai and at Coimbatore SEZ is eligible for benefits within the meaning of section 10AA of the IT. Act, 1961. Accordingly grounds 3, 3.1. 3.2 and 3.3 are adjudicated in favour of the appellant. 9. Thus, on the basis of precedence as available, in the form of my own appeal order for A.Y. 2013-14, I adjudicate this issue in favour of the appellant. 8. In view of the finding of Ld.CIT(A), even if it is assumed that existing plant machinery was used at Chennai SEZ or Commercial SEZ even then the value would be lower than the 50%. This finding is not controverted by the Revenue. Therefore, we do not find any merit in the appeal of the Revenue, the same is hereby dismissed. Grounds raised by the Revenue are accordingly, dismissed. 12.1. Therefore, taking the consistent view, grounds raised in this appeal filed by the Revenue are also dismissed. 13. In the result, the appeal of the Revenue is dismissed. 14. In the final result, both appeals of the Revenue in ITA No.7568/Del/2018 [Assessment Year 2014-15] and ITA No.1068/Del/2020 [Assessment Year 2016-17] are dismissed. Order pronounced in the open Court on 31 st October, 2023. - - Tax ..... X X X X Extracts X X X X X X X X Extracts X X X X
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