https://www.taxtmi.com/caselaws?id=182777 Deduction under section 80-I could not be denied merely because the value of previously used machinery later exceeded 20% of the total machinery, where the undertaking had already been accepted as a new industrial unit in earlier years. The relevant test under section 80-I(2)(ii) and Explanation (2) is whether the business was formed by transfer of previously used machinery beyond the prescribed limit. Earlier allowance of the deduction showed that the unit was not so formed, and a later increase in old machinery did not alter that character. The provision was construed liberally and purposively, and the deduction remained available for both assessment years. en-us Tue, 17 Aug 2004 00:00:00 +0530 Thu, 19 May 2016 14:06:04 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=182777 Deduction under section 80-I could not be denied merely because the value of previously used machinery later exceeded 20% of the total machinery, where the undertaking had already been accepted as a new industrial unit in earlier years. The relevant test under section 80-I(2)(ii) and Explanation (2) is whether the business was formed by transfer of previously used machinery beyond the prescribed limit. Earlier allowance of the deduction showed that the unit was not so formed, and a later increase in old machinery did not alter that character. The provision was construed liberally and purposively, and the deduction remained available for both assessment years. Case-Laws Income Tax Tue, 17 Aug 2004 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=182777