2019 (7) TMI 1414

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....e common questions and hence, the appeals are being disposed of by a common order. For convenience, we may refer to Income Tax Appeal No.510 of 2017. This Appeal is filed by the Revenue to challenge the judgment of the Income Tax Appellate Tribunal (for short, 'the Tribunal'). Following questions are presented for our consideration: i) Whether on the facts and in circumstances of the case and in Law, the Tribunal was justified in deleting the disallowance of claim of deduction under section 80-IA in respect of Unit-1 at Daman without appreciating the fact that Unit-1 at Daman was formed with the transfer of machinery from Aurangabad Unit in excess of 20% of the total value of the plant & machinery at Unit-1, Daman, in violation of ....

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....tion of income subject to fulfillment of conditions contained therein. The assessee's units at Daman situated in a backward area was subject to fulfillment of conditions, eligible for such exemption. Sub-section (3) of section 80-IA laid down these conditions in the following manner: "(3) This section applies to an undertaking referred to in clause (ii) or clause (iv) of sub-section (4) which fulfills all the following conditions, namely:- (i) it is not formed by splitting up, or the reconstruction, of a business already in existence: Provided that this condition shall not apply in respect of an undertaking which is formed as a result of the reestablishment, reconstruction or revival by the assessee of the business of any ....

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....ously should not exceed 20% of the total value of the machinery of the plant used in the business. In this context, Revenue had contended before the Tribunal that the petitioner had transferred its machinery previously used at Aurangabad to its units at Daman and thereby breached this condition. 6. The Tribunal, however, in a detailed discussion contained in the impugned judgment, had rejected the contention. The Tribunal had taken into account the valuation of the existing machinery used at Daman and the valuation of the written down value of the machinery transferred from Aurangabad to come to the conclusion that the same did not exceed 20% of the total value of the machinery. The entire issue is thus based on factual consideration and....