Law:

Section:

Section 84 (Now Section 80J) of the Income-tax Act, 1961 – Deductions – Profits and gains from new industrial undertakings, ships or hotels etc. – Assessment years 1966-67 and 1967-68 – Whether for purposes of determining tax holiday, in each assessment year commencing from assessment year relevant to previous year in which new industrial undertaking begins manufacture or production, taxing authority will have to consider whether industrial undertaking was formed by transfer to its new business of building, machinery or plant previously used for any purpose, and, if so, whether total value of such transferred asset exceeded 20% of total value of building, machinery or plant used in business of such undertaking during relevant year – Held, yes - Whether if new industrial undertaking, which has not satisfied such test in any one of earlier assessment years comprised in five-year period, acquires new building, machinery or plant during any one of succeeding assessment years and as a result of such acquisition condition prescribed in clause (ii ) of sub-section 84(2) is fulfilled, then, as from assessment year in which such condition is satisfied, benefit of tax holiday will be available to it for remaining period of five-year term – Held, yes FACTS The assessee-company was incorporated on 12-4-1962, for carrying on business as manufacture of starters and switches used in fluorescent lamps. For the purpose of housing its manufactory, the assessee purchased land and building. It also purchased from ‘P' previously used plant and machinery together with licences, stock-in-trade, etc., under an agreement dated 16-4-1962. The assessee started its manufacturing activity on 1-6-1962, with the aid of the machinery so purchased. The assessee, after starting its manufacturing activity, purchased a fully automatic Swiss lathe and also an extrusion press from Germany for manufacture of brass pins and aluminium containers. A fully automatic vacuum machine was also installed to increase the output of fluorescent starters and switches with minimum wastage of labour. For the assessment years 1966-67 and 1967-68, the assessee claimed relief of tax holiday under section 84. The ITO…

Deprecated: trim(): Passing null to parameter #1 ($string) of type string is deprecated in /home/digixyei/sldsystempk.com/view/master-layout/view_case.php on line 492