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  

AI Summary

Company Challenges Deduction Denial for UPFC Machinery Purchase Under Section 80IC; Must Prove Equipment is New A company inquired about eligibility for a deduction under Section 80IC after purchasing plant and machinery from Uttar Pradesh Finance Corporation (UPFC). The Assessing Officer disallowed the deduction, arguing it applies only to new purchases. The company treated the UPFC purchase as new. In response, it was advised that the company must prove the equipment is new, as purchasing from UPFC alone does not establish that the machinery was not previously used.