2011 (10) TMI 622

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...., on the profit earned from an existing old unit by terming it as a new unit for the purpose of section 10B merely because it was granted approval of conversion of the Domestic Tariff Area(DTA) Unit into Export Orient Unit (EOU), particularly ignoring the fact that the turnover from the same unit in immediately preceding year had been more than this year and that the assessee had been claiming exemption u/s. 80HHC from the same unit for several years? (B) Whether on the facts and in the circumstances of the case, the Appellate Tribunal was right in law in holding that conversion of DTA Unit into EOU could not be treated as Unit set up by reconstruction/ splitting up of existing Unit and thereby allowing deduction u/s.10B for a unit for wh....

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.... by the transfer of to a new business of machinery or plant previously use for any purpose." 3. On the premise that the assessee was converted into EOU from earlier existing export unit, the Assessing Officer was of the opinion that abovementioned condition was not fulfilled. The assessee carried the issue in appeal. CIT(Appeals) allowed the appeal and granted benefit to the assessee. Thereupon Revenue approached the Tribunal. The Tribunal by impugned judgement relying on circulars of CBDT as also decision of Punjab and Haryana High Court in case of Commissioner of Income Tax v. Mahavir Spinning Mills Ltd. reported in (2008) 303 ITR 353(P&H), dismissed the appeal. Hence the present appeal. 4. Having heard learned counsel for the Revenue a....