DEDUCTION UNDER SECTION 80IC

[shruti gupta]

 

COMPANY HAVE PURHCASED PLANT AND MACHINERY FROM UTTAR PRADESH FINANCE CORPORATION COMPANY UNDER 80IC COVER AREAS BUT A.O. HAS DISALLOWED AND ADDITION .

REASON FOR U/S 80IC IS AVAILABLE ONLY NEW  PURCHASES PLANT AND MACHINERY , MY COMPANY HAS PURCHASES UPFC AND TREAT AS FIRST . PLEASE SEND ANSWAR, COMPANY LIABLE 80IC OR NOT  

[Rama Krishana]

The onus is on you to prove that the same are new plant and machinery. The mere fact the it has been purchased from UPFC is not sufficient to prove that the same has not been used previously.

AI Summary

Section 80IC deduction requires proof that plant and machinery are new; purchase from UPFC alone is insufficient. Deduction under Section 80IC is limited to qualifying new plant and machinery; the assessing officer may disallow a claim if the taxpayer cannot prove the assets are new. Purchase from a financial corporation does not, by itself, prove first-use. The burden is on the taxpayer to produce evidence that the taxpayer is the first user of the plant and machinery to sustain the deduction.