TaxTMI 
TaxTMI 
2022 (4) TMI 811
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....dv. Ms. Prakriti Roy, Adv. ORDER UPON hearing the counsel the Court made the following SLP(C) No 6730/2021 1 In arriving at the conclusion that the respondent-assessee was entitled to the benefit of the provisions of Section 10B of the Income Tax Act 1961, the Income Tax Appellate Tribunal "Tribunal" 2107 ITR 195 (SC), by its decision dated 24 March 2011, applied the tests which have been formulated in the decision of this Court in Textile Machinery Corporation Ltd v CIT 107 ITR 195 (SC). These tests which have been formulated in the decision of this Court are reproduced below: "i. Manufacture or production of articles yielding additional profit attributable to the new outlay of capital in a separate and distinct unit is the heart of....
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....e than 20% value of new unit are transferred to the new unit from the old unit." 2 These tests have been reiterated in the decision in CIT v Indian Aluminium 108 ITR 367 (SC). 3 In coming to the conclusion that the tests which have been formulated in the decision of this Court in Textile Machinery Corporation Ltd (supra) and reiterated in Indian Aluminium (supra) have been duly fulfilled, the Tribunal has entered specific findings of fact which are contained in paragraph 19 of the judgment which is extracted below: "19. It is thus submitted that the following facts will go to establish the assessee's claim that the unit formed in 1998 is a new undertaking: i. the old unit approved under license No.CIL/420 (1985) dt.26-12-1985 st....
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....osed at pg.37 of paper book) clearly shows that the new unit is a completely different and independent unit which is located at a separate plot adjacent to the old unit; vii. a certificate given by the Engineer of the appellant, one Mr. Y.S. Reddy establishes that the Greater Ferro-met Unit is capable of independently producing ore on its own of the desired ferrous" content." 4 The Tribunal has noted that the new unit was fully a independent unit with a production capacity of 15 lakh tons per annum as compared to the earlier production capacity of 2 lakh tons per annum of the old unit. The Tribunal has also dealt with the reasons which were furnished by the CIT in coming to the conclusion that what was set up was only an expansion of t....