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

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....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 relief under section 15C of the Indian Income-tax Act, 1922 (cor....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

.... 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 the aid of power and a minimum of twenty persons without the a....

X X   X X   Extracts   X X   X X

Full Text of the Document

X X   X X   Extracts   X X   X X

....omplete 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 is also not relevant that the said product is consumed by the existing busine....