New industrial undertaking test determines tax deduction eligibility when expansion yields a separately identifiable, viable unit. Deduction under section 80-J is available only if a new industrial undertaking is formed, shown by substantial fresh capital investment in a distinct unit, employment of requisite labour, manufacture of identifiable articles, profits attributable to the new unit, and a separate physical and organisational identity enabling the unit to be viable on its own; mere expansion that becomes inextricably part of the existing unit does not qualify.
Cases where this provision is explicitly mentioned in the judgment/order text; may not be exhaustive. To view the complete list of cases mentioning this section, Click here.
Provisions expressly mentioned in the judgment/order text.
New industrial undertaking test determines tax deduction eligibility when expansion yields a separately identifiable, viable unit.
Deduction under section 80-J is available only if a new industrial undertaking is formed, shown by substantial fresh capital investment in a distinct unit, employment of requisite labour, manufacture of identifiable articles, profits attributable to the new unit, and a separate physical and organisational identity enabling the unit to be viable on its own; mere expansion that becomes inextricably part of the existing unit does not qualify.
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