TaxTMI 
TaxTMI 
2007 (10) TMI 381
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....e-tax Act, 1961 on February 22, 1995, on a total income of Rs. 19,59,020. In the course of the assessment proceedings the Assessing Officer found that the assessee had claimed deductions under sections 80HH and 80-I amounting to Rs.7,72,709 on the ground that the three units at Pondicherry, Avanashi and Hosur were being new industrial undertakings eligible for deduction under section 80-I. Besides, the Pondicherry unit, being situated in a back-ward area, was eligible for deduction under section 80HH. The four units earlier belonged to different companies and were assessed separately. They were amalgamated with effect from April 1, 1990, and the business was carried on and continued by the assessee-company, being the amalgamated company. 3....
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....red period, and observing that though the circular was issued with reference to section 84, the same principle would apply to sections 80HH and 80-I and that too with greater force in a case of amalgamation held that the amalgamated company would be eligible for the relief claimed in respect of the amalgamating companies prior to their amalgamation. Holding so, he directed the Assessing Officer to examine whether those units were eligible for deduction in the initial year and if so, to allow the admissible claim to the assessee for the assessment year under appeal. 6. Aggrieved by that portions of the order decided against them by the Commissioner of Income-tax (Appeals), the assessee as well as the Revenue filed appeals before the Income-....
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....of law framed and taken up for decision on the materials on record. 9. In order to answer the first question of law, it would be proper to extract the relevant portion of section 43(6) of the Income-tax Act, 1961. "43. In sections 28 to 41 and in this section, unless the context otherwise requires- . . . (6) 'written down value' means- (a) in the case of assets acquired in the previous year, the actual cost to the assessee; (b) in the case of assets acquired before the previous year, the actual cost to the assessee less all depreciation actually allowed to him under this Act, or under the Indian Income-tax Act, 1922 (11 of 1922) or any Act repealed by that Act, or under any executive orders issued when the Indian Income-tax Act, 1886 (....
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....red to decisions, the question of law has to decided against the Revenue and the same is thus decided against the Revenue. 12. A reading of the provision of sections 80HH and 80-I of the Act, it is clear that the same has been incorporated to encourage the new industrial undertaking on fulfilment of certain conditions mentioned therein. If the conditions mentioned in the sections are complied with by the assessee, the benefit extended by the provisions has to be granted to the assessee. The amalgamation of one company with the other company cannot be regarded as a splitting up or reconstruction or by a transfer of a new business of the plant and machinery of the old business. With reference to the Companies Act, the amalgamation was ....