https://www.taxtmi.com/caselaws?id=6503 Section 15C of the Indian Income-tax Act, 1922 granted exemption to newly established industrial undertakings but excluded units formed by splitting up or reconstruction of an existing business. The controlling test was whether the concern was merely an expansion of the old business or a separate industrial unit with its own physical identity, fresh capital, labour, manufacturing activity and ascertainable profits. Use of the new unit's products in the existing business did not by itself amount to reconstruction. On that reasoning, the steel foundry division and the jute mill division were treated as distinct units, not reconstructions of the assessee's old business, and the exemption was available. en-us Tue, 25 Jan 1977 00:00:00 +0530 Thu, 24 Jul 2014 16:26:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=6503 Section 15C of the Indian Income-tax Act, 1922 granted exemption to newly established industrial undertakings but excluded units formed by splitting up or reconstruction of an existing business. The controlling test was whether the concern was merely an expansion of the old business or a separate industrial unit with its own physical identity, fresh capital, labour, manufacturing activity and ascertainable profits. Use of the new unit's products in the existing business did not by itself amount to reconstruction. On that reasoning, the steel foundry division and the jute mill division were treated as distinct units, not reconstructions of the assessee's old business, and the exemption was available. Case-Laws Income Tax Tue, 25 Jan 1977 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=6503