https://www.taxtmi.com/caselaws?id=23879 HC held that eligibility for deduction under s.80J(1) must be determined exclusively with reference to the initial assessment year, by applying the condition in s.80J(4)(ii) read with Expl. 2. If, in that year, the value of transferred old machinery exceeds 20% of the total value of plant and machinery of the new undertaking, the unit is ineligible and such ineligibility cannot be cured by later additions or investments. Since the assessee's undertaking did not satisfy this condition in the initial year, no deduction under s.80J was allowable in subsequent years. The Tribunal's contrary view was set aside, and the question was answered in favour of the Revenue. en-us Fri, 01 Sep 1989 00:00:00 +0530 Thu, 04 Dec 2025 12:24:00 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=23879 HC held that eligibility for deduction under s.80J(1) must be determined exclusively with reference to the initial assessment year, by applying the condition in s.80J(4)(ii) read with Expl. 2. If, in that year, the value of transferred old machinery exceeds 20% of the total value of plant and machinery of the new undertaking, the unit is ineligible and such ineligibility cannot be cured by later additions or investments. Since the assessee's undertaking did not satisfy this condition in the initial year, no deduction under s.80J was allowable in subsequent years. The Tribunal's contrary view was set aside, and the question was answered in favour of the Revenue. Case-Laws Income Tax Fri, 01 Sep 1989 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=23879