Deduction under section 80-J case of expansion of an existing industrial unit.

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.... the 16th December, 1975 wherein it was clarified that in a case of expansion of an existing industrial unit, deduction under section 80-J should be allowed only if it is established that a new industrial undertaking has been formed. 2. The Supreme Court in the case of Textile Machinery Corporation Ltd. Vs. CIT., West Bengal (107-ITR-195) has laid down the criteria for deciding whether the reli....

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....e commodities as the old business or it may produce some other distinct marketable products, even commodities which may feed the old business. These products may be consumed by the assessee in his old business or may be sold in the open market. One thing is certain that the new undertaking must be an integrated unit by itself wherein articles are produced and atleast a minimum of ten persons with ....

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....s and which may exist on its own as a viable unit. Viability does not mean complete independence from the existing business. It means that the new unit can exist even after the cessation of the existing activity of the assessee. The dependence of the new unit on existing business for inputs is not relevant so long as the new undertaking is manufacturing an identifiable and marketable product. It i....