Closure of Unit

[Asked by Guest]

Hello,

We have opened Unit in Uttaranchal under 80IC in 2007-08. 100% IT exemption was allowable upto 31.03.2012.

We have opened another unit also in Uttaranchal Under 80IC in 2010-11. 100% IT expemption will be allowable upto 31.03.2015. My queries are

1.Can we close Unit I from 1st April'2012 and shift  the transactions to Unit II for availling 100% IT expemption.

2.Can we transfer the closing stock in Unit I to Unit II from 1-4-2012.

3.Can we transfer all the other balances(debtors,Creditors) from Unit I to Unit II w.e.f 01.04.2012.

Please advice me to proceed in a better way.

Uday.

AI Summary

80IC exemption: where unit transfer lacks statutory provision, demerger into a new company may preserve tax benefits.
Whether transactions, closing stock and balances of a unit whose 80IC exemption has expired may be shifted to another exempt unit; response states there is no specific provision for direct unit transfer, and suggests creating a company and demerging the unit into the new company to claim exemption under 80IC.