Independent manufacturing undertaking eligibility preserves Section 80IA/80IB deductions, while machinery kept ready for use qualifies for depreciation.

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....Section 80IA/80IB deductions were available to a new hydraulic power steering gear undertaking that operated as an integrated, independent manufacturing unit and commenced production before the statutory cut-off. Separate premises, new machinery, capital, workforce, power load, production, accounts, sales and excise records supported its independent character; subsequent machinery additions merely increased capacity. Initial-year eligibility continued through consecutive eligible years where no material facts changed. Depreciation was allowable for machinery installed and kept ready for business use, as passive use satisfies the business-use requirement where contrary evidence is absent. Deductions and depreciation were allowed for the relevant years.....