Textile Machinery Corporation Ltd. v. CIT

107 ITR 195Supreme Court of India1977#591 most cited

What is Textile Machinery Corporation Ltd. v. CIT authority for?

A new industrial undertaking is not considered a reconstruction of an existing business for tax deduction purposes if it is a separate, independent production unit manufacturing commercially tangible products that can operate without losing its identity in the old business. The transfer and substantial use of assets and manpower from an old business to a new one may indicate reconstruction.

165

judgments rely on this decision, according to BharatTax’s citation analysis of 366,470 Indian tax judgments — from 2008 to 2026.

Also referred to as

Textile Machinery Corporation Ltd. v. CIT · 107 ITR 195 · Section 80J · Section 80IC · new industrial undertaking · reconstruction of business · splitting up of business · tax deduction eligibility · independent production unit · transfer of substantial assets · tax benefits

Also reported as

2 SCC 368

Sections most often in play

Section 143(3)Section 263Section 80-ICSection 10(2A)Section 143(3A)Section 28(v)Section 40(b)Section 143(3B)

Issues it is cited on

section 2(29ba)software technology parksection 80jsection 80icsection 80hhcsection 80hhtax benefitsection 80isection 80iasection 10aarm's length pricegross total income

Judgments citing Textile Machinery Corporation Ltd. v. CIT

DCIT Cen Cir 40, Mumbai vs. Saf Yeast Co. P. Ltd, Mumbai

In the result, the appeals of Revenue are dismissed and the appeals of assessee are partly allowed

ITA 1780/MUM/2014[2008-09]Status: DisposedITAT Mumbai24 Nov 2017AY 2008-09

Bench: Sri Mahavir Singh, Jm & Sri N.K. Pradhan, Am

For Appellant: J.P. Bairagra, ARFor Respondent: B.C.S. Naik, CIT-DR
Section 143(3)Section 80I

…p for generation of power. The CIT(A) has correctly held so in the ITA Nos. 1634-1637&1777-1780/Mum/2016 Saf Yeast Company Private Limited (A.Y. 05-06 to 08-09) assessee’s case. Hon’ble Supreme Court in the case of Textile Machinery Corpn. Ltd. vs. CIT [1977] 107 ITR 195 held that in order to be entitled to the benefit under Section 15C of the Act, the following facts have to be established by the assessee, subject always to time-schedule in the Section: 1. Investment of substantial fresh capital in the industrial undertaking set up, 2. Employment of requisite labour therein, 3. Manufacture or production of arti…

DCIT Cen Cir 40, Mumbai vs. Saf Yeast Co. P. Ltd, Mumbai

In the result, the appeals of Revenue are dismissed and the appeals of assessee are partly allowed

ITA 1778/MUM/2014[2006-07]Status: DisposedITAT Mumbai24 Nov 2017AY 2006-07

Bench: Sri Mahavir Singh, Jm & Sri N.K. Pradhan, Am

For Appellant: J.P. Bairagra, ARFor Respondent: B.C.S. Naik, CIT-DR
Section 143(3)Section 80I

…p for generation of power. The CIT(A) has correctly held so in the ITA Nos. 1634-1637&1777-1780/Mum/2016 Saf Yeast Company Private Limited (A.Y. 05-06 to 08-09) assessee’s case. Hon’ble Supreme Court in the case of Textile Machinery Corpn. Ltd. vs. CIT [1977] 107 ITR 195 held that in order to be entitled to the benefit under Section 15C of the Act, the following facts have to be established by the assessee, subject always to time-schedule in the Section: 1. Investment of substantial fresh capital in the industrial undertaking set up, 2. Employment of requisite labour therein, 3. Manufacture or production of arti…

DCIT Cen Cir 40, Mumbai vs. Saf Yeast Co. P. Ltd, Mumbai

In the result, the appeals of Revenue are dismissed and the appeals of assessee are partly allowed

ITA 1777/MUM/2014[2005-06]Status: DisposedITAT Mumbai24 Nov 2017AY 2005-06

Bench: Sri Mahavir Singh, Jm & Sri N.K. Pradhan, Am

For Appellant: J.P. Bairagra, ARFor Respondent: B.C.S. Naik, CIT-DR
Section 143(3)Section 80I

…p for generation of power. The CIT(A) has correctly held so in the ITA Nos. 1634-1637&1777-1780/Mum/2016 Saf Yeast Company Private Limited (A.Y. 05-06 to 08-09) assessee’s case. Hon’ble Supreme Court in the case of Textile Machinery Corpn. Ltd. vs. CIT [1977] 107 ITR 195 held that in order to be entitled to the benefit under Section 15C of the Act, the following facts have to be established by the assessee, subject always to time-schedule in the Section: 1. Investment of substantial fresh capital in the industrial undertaking set up, 2. Employment of requisite labour therein, 3. Manufacture or production of arti…

Saf Yeast Company P.Ltd, Mumbai vs. DCIT Cen Cir 40, Mumbai

In the result, the appeals of Revenue are dismissed and the appeals of assessee are partly allowed

ITA 1637/MUM/2014[2008-09]Status: DisposedITAT Mumbai24 Nov 2017AY 2008-09

Bench: Sri Mahavir Singh, Jm & Sri N.K. Pradhan, Am

For Appellant: J.P. Bairagra, ARFor Respondent: B.C.S. Naik, CIT-DR
Section 143(3)Section 80I

…p for generation of power. The CIT(A) has correctly held so in the ITA Nos. 1634-1637&1777-1780/Mum/2016 Saf Yeast Company Private Limited (A.Y. 05-06 to 08-09) assessee’s case. Hon’ble Supreme Court in the case of Textile Machinery Corpn. Ltd. vs. CIT [1977] 107 ITR 195 held that in order to be entitled to the benefit under Section 15C of the Act, the following facts have to be established by the assessee, subject always to time-schedule in the Section: 1. Investment of substantial fresh capital in the industrial undertaking set up, 2. Employment of requisite labour therein, 3. Manufacture or production of arti…

Saf Yeast Company P.Ltd, Mumbai vs. DCIT Cen Cir 40, Mumbai

In the result, the appeals of Revenue are dismissed and the appeals of assessee are partly allowed

ITA 1636/MUM/2014[2007-08]Status: DisposedITAT Mumbai24 Nov 2017AY 2007-08

Bench: Sri Mahavir Singh, Jm & Sri N.K. Pradhan, Am

For Appellant: J.P. Bairagra, ARFor Respondent: B.C.S. Naik, CIT-DR
Section 143(3)Section 80I

…p for generation of power. The CIT(A) has correctly held so in the ITA Nos. 1634-1637&1777-1780/Mum/2016 Saf Yeast Company Private Limited (A.Y. 05-06 to 08-09) assessee’s case. Hon’ble Supreme Court in the case of Textile Machinery Corpn. Ltd. vs. CIT [1977] 107 ITR 195 held that in order to be entitled to the benefit under Section 15C of the Act, the following facts have to be established by the assessee, subject always to time-schedule in the Section: 1. Investment of substantial fresh capital in the industrial undertaking set up, 2. Employment of requisite labour therein, 3. Manufacture or production of arti…

Saf Yeast Company P.Ltd, Mumbai vs. DCIT Cen Cir 40, Mumbai

In the result, the appeals of Revenue are dismissed and the appeals of assessee are partly allowed

ITA 1635/MUM/2014[2006-07]Status: DisposedITAT Mumbai24 Nov 2017AY 2006-07

Bench: Sri Mahavir Singh, Jm & Sri N.K. Pradhan, Am

For Appellant: J.P. Bairagra, ARFor Respondent: B.C.S. Naik, CIT-DR
Section 143(3)Section 80I

…p for generation of power. The CIT(A) has correctly held so in the ITA Nos. 1634-1637&1777-1780/Mum/2016 Saf Yeast Company Private Limited (A.Y. 05-06 to 08-09) assessee’s case. Hon’ble Supreme Court in the case of Textile Machinery Corpn. Ltd. vs. CIT [1977] 107 ITR 195 held that in order to be entitled to the benefit under Section 15C of the Act, the following facts have to be established by the assessee, subject always to time-schedule in the Section: 1. Investment of substantial fresh capital in the industrial undertaking set up, 2. Employment of requisite labour therein, 3. Manufacture or production of arti…

Saf Yeast Company P.Ltd, Mumbai vs. DCIT Cen Cir 40, Mumbai

In the result, the appeals of Revenue are dismissed and the appeals of assessee are partly allowed

ITA 1634/MUM/2014[2005-06]Status: DisposedITAT Mumbai24 Nov 2017AY 2005-06

Bench: Sri Mahavir Singh, Jm & Sri N.K. Pradhan, Am

For Appellant: J.P. Bairagra, ARFor Respondent: B.C.S. Naik, CIT-DR
Section 143(3)Section 80I

…p for generation of power. The CIT(A) has correctly held so in the ITA Nos. 1634-1637&1777-1780/Mum/2016 Saf Yeast Company Private Limited (A.Y. 05-06 to 08-09) assessee’s case. Hon’ble Supreme Court in the case of Textile Machinery Corpn. Ltd. vs. CIT [1977] 107 ITR 195 held that in order to be entitled to the benefit under Section 15C of the Act, the following facts have to be established by the assessee, subject always to time-schedule in the Section: 1. Investment of substantial fresh capital in the industrial undertaking set up, 2. Employment of requisite labour therein, 3. Manufacture or production of arti…

Imsi India Pvt. Ltd., New Delhi vs. ACIT, Dehradun

In the result, the appeals of the assessee are allowed

ITA 2506/DEL/2013[2010-11]Status: DisposedITAT Delhi27 Oct 2017AY 2010-11

Bench: Sh. N. K. Saini, Am & Ms. Suchitra Kamble, Jm Ita No. 5856/Del/2011 : Asstt. Year : 2007-08 Ita No. 4277/Del/2012 : Asstt. Year : 2008-09 Ita No. 5744/Del/2012 : Asstt. Year : 2009-10 Ita No. 2506/Del/2013 : Asstt. Year : 2010-11 Imsi India Pvt. Ltd., Vs Deputy/Assistant Commissioner C/O Luthra & Luthra Law Offices, Of Income Tax, Circle-2, 103, Ashoka Estate, Barakhamba Dehradun, Uttranchal Road, New Delhi-110001 (Appellant) (Respondent) Pan No. Aabci1797A Assessee By : Sh. Ashwani Kumar, Sh. Sudhindra Jain & Sh. Alok Kumar Jain, Cas Revenue By : Sh. Amrit Lal, Sr. Dr Date Of Hearing : 15.09.2017 Date Of Pronouncement : 27.10.2017 Order Per N. K. Saini, Am: This Appeal By The Assessee For The Assessment Year 2007- 08 Is Directed Against The Order Dated 03.10.2011 Of Ld. Cit(A)-Ii, Dehradun & The Other Appeals Of The Assessee Are Directed Against The Separate Orders Dated 09.02.2012, 20.12.2011 & 30.11.2012 Passed By The Ld. Cit(A)-I, Dehradun For The Assessment Years 2008-09, 2009-10 & 2010-11 Respectively. 2. Since The Issue Involved Is Common In All These Appeals Which Were Heard Together So These Are Being Disposed Off By This Consolidated Order For The Sake Of Convenience & Brevity.

For Appellant: Sh. Ashwani Kumar, Sh. Sudhindra JainFor Respondent: Sh. Amrit Lal, Sr. DR
Section 2Section 234BSection 80Section 80I

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘C’, NEW DELHI Before Sh. N. K. Saini, AM and Ms. Suchitra Kamble, JM ITA No. 5856/Del/2011 : Asstt. Year : 2007-08 ITA No. 4277/Del/2012 : Asstt. Year : 2008-09 ITA No. 5744/Del/2012 : Asstt. Year : 2009-10 ITA No. 2506/Del/2013 : Asstt. Year : 2010-11 IMSI India Pvt. Ltd., Vs Deputy/Assistant Commissioner C/o Luthra & Luthra Law Offices, of Income Tax, Circle-2, 103, Ashoka Estate, Barakhamba Dehradun, Uttranchal Road, New Delhi-110001 (APPELLANT) (RESPONDENT) PAN No. AABCI1797A Assessee by : Sh. Ashwani Kumar, Sh. Sudhindra Jain & Sh. Alok Kumar Jain, CAs R…

Imsi India Pvt. Ltd., New Delhi vs. DCIT, Dehradun

In the result, the appeals of the assessee are allowed

ITA 5856/DEL/2011[2007-08]Status: DisposedITAT Delhi27 Oct 2017AY 2007-08

Bench: Sh. N. K. Saini, Am & Ms. Suchitra Kamble, Jm Ita No. 5856/Del/2011 : Asstt. Year : 2007-08 Ita No. 4277/Del/2012 : Asstt. Year : 2008-09 Ita No. 5744/Del/2012 : Asstt. Year : 2009-10 Ita No. 2506/Del/2013 : Asstt. Year : 2010-11 Imsi India Pvt. Ltd., Vs Deputy/Assistant Commissioner C/O Luthra & Luthra Law Offices, Of Income Tax, Circle-2, 103, Ashoka Estate, Barakhamba Dehradun, Uttranchal Road, New Delhi-110001 (Appellant) (Respondent) Pan No. Aabci1797A Assessee By : Sh. Ashwani Kumar, Sh. Sudhindra Jain & Sh. Alok Kumar Jain, Cas Revenue By : Sh. Amrit Lal, Sr. Dr Date Of Hearing : 15.09.2017 Date Of Pronouncement : 27.10.2017 Order Per N. K. Saini, Am: This Appeal By The Assessee For The Assessment Year 2007- 08 Is Directed Against The Order Dated 03.10.2011 Of Ld. Cit(A)-Ii, Dehradun & The Other Appeals Of The Assessee Are Directed Against The Separate Orders Dated 09.02.2012, 20.12.2011 & 30.11.2012 Passed By The Ld. Cit(A)-I, Dehradun For The Assessment Years 2008-09, 2009-10 & 2010-11 Respectively. 2. Since The Issue Involved Is Common In All These Appeals Which Were Heard Together So These Are Being Disposed Off By This Consolidated Order For The Sake Of Convenience & Brevity.

For Appellant: Sh. Ashwani Kumar, Sh. Sudhindra JainFor Respondent: Sh. Amrit Lal, Sr. DR
Section 2Section 234BSection 80Section 80I

…IN THE INCOME TAX APPELLATE TRIBUNAL DELHI BENCH ‘C’, NEW DELHI Before Sh. N. K. Saini, AM and Ms. Suchitra Kamble, JM ITA No. 5856/Del/2011 : Asstt. Year : 2007-08 ITA No. 4277/Del/2012 : Asstt. Year : 2008-09 ITA No. 5744/Del/2012 : Asstt. Year : 2009-10 ITA No. 2506/Del/2013 : Asstt. Year : 2010-11 IMSI India Pvt. Ltd., Vs Deputy/Assistant Commissioner C/o Luthra & Luthra Law Offices, of Income Tax, Circle-2, 103, Ashoka Estate, Barakhamba Dehradun, Uttranchal Road, New Delhi-110001 (APPELLANT) (RESPONDENT) PAN No. AABCI1797A Assessee by : Sh. Ashwani Kumar, Sh. Sudhindra Jain & Sh. Alok Kumar Jain, CAs R…

Orissa State Warehousing Corporation, Bhubaneswar vs. DCIT, Circle-1(1), Bhubaneswar

In the result, appeal of the assessee is partly allowed for statistical

ITA 346/CTK/2014[2010-11]Status: DisposedITAT Cuttack20 Sept 2017AY 2010-11

Bench: S/Shri N.S Saini & Pavan Kumar Gadaleassessment Year : 2010-2011

For Appellant: Shri B.K.Mohapatra, ARFor Respondent: Shri Kunal Singh, CIT DR
Section 10(29)Section 80Section 80I

…ot be treated as a new undertaking making it eligible for deduction u/s.80-IB. To support his view, the Assessing Officer relied Asse ssment Year : 20 10- 201 1 upon the decision of the Supreme Court in the case of Textile Machinery Corporation Ltd. v. CIT (107 ITR 195) where it was held that the true tests of a new (industrial) undertaking is whether a new or an identifiable undertaking separate and distinct from the existing business comes into being. It should not be a case of substantially the same person carrying on substantially the same business. The Assessing Officer observed that in the case of the…

DCIT, Chennai vs. Neyveli Lignite Corporation Limited, Neyveli

In the result, the appeals of the Revenue as well as the appeal of the assessee are partly allowed

ITA 855/CHNY/2013[2009-2010]Status: DisposedITAT Chennai28 Apr 2017AY 2009-2010

Bench: Shri N.R.S. Ganesan & Shri D.S.Sunder Singh

…ased on the reasons cited in the paragraph (i) & (ii) above. Accordingly, the deduction claimed by the assessee u/s.80-IA of the Income-tax Act cannot be accepted. iv) The decision of the Supreme Court in the case of Textile Machinery Corporation Ltd Vs CIT (107 ITR 195) cannot be accepted in the assessee’s case due to the fact that the above said decision of the Honorable Supreme Court was purely related to the restructuring of the business. Hence, the facts of the said case are not applicable in the instant case. Therefore, it is clear that the provisions of section 80-lA shall be applicable only to the asses…

Neyveli Lignite Corporation Ltd., Cuddalore vs. DCIT, Chennai

In the result, the appeals of the Revenue as well as the appeal of the assessee are partly allowed

ITA 2140/CHNY/2013[2010-11]Status: DisposedITAT Chennai28 Apr 2017AY 2010-11

Bench: Shri N.R.S. Ganesan & Shri D.S.Sunder Singh

…ased on the reasons cited in the paragraph (i) & (ii) above. Accordingly, the deduction claimed by the assessee u/s.80-IA of the Income-tax Act cannot be accepted. iv) The decision of the Supreme Court in the case of Textile Machinery Corporation Ltd Vs CIT (107 ITR 195) cannot be accepted in the assessee’s case due to the fact that the above said decision of the Honorable Supreme Court was purely related to the restructuring of the business. Hence, the facts of the said case are not applicable in the instant case. Therefore, it is clear that the provisions of section 80-lA shall be applicable only to the asses…

DCIT, Chennai vs. M/S. Neyveli Lignite Corporation Limited, Neyveli

In the result, the appeals of the Revenue as well as the appeal of the assessee are partly allowed

ITA 2077/CHNY/2013[2010-11]Status: DisposedITAT Chennai28 Apr 2017AY 2010-11

Bench: Shri N.R.S. Ganesan & Shri D.S.Sunder Singh

…ased on the reasons cited in the paragraph (i) & (ii) above. Accordingly, the deduction claimed by the assessee u/s.80-IA of the Income-tax Act cannot be accepted. iv) The decision of the Supreme Court in the case of Textile Machinery Corporation Ltd Vs CIT (107 ITR 195) cannot be accepted in the assessee’s case due to the fact that the above said decision of the Honorable Supreme Court was purely related to the restructuring of the business. Hence, the facts of the said case are not applicable in the instant case. Therefore, it is clear that the provisions of section 80-lA shall be applicable only to the asses…

DCIT, Chennai vs. M/S. Neyveli Lignite Corporation Limited, Neyveli

In the result, the appeals of the Revenue as well as the appeal of the assessee are partly allowed

ITA 2029/CHNY/2013[2007-08]Status: DisposedITAT Chennai28 Apr 2017AY 2007-08

Bench: Shri N.R.S. Ganesan & Shri D.S.Sunder Singh

…ased on the reasons cited in the paragraph (i) & (ii) above. Accordingly, the deduction claimed by the assessee u/s.80-IA of the Income-tax Act cannot be accepted. iv) The decision of the Supreme Court in the case of Textile Machinery Corporation Ltd Vs CIT (107 ITR 195) cannot be accepted in the assessee’s case due to the fact that the above said decision of the Honorable Supreme Court was purely related to the restructuring of the business. Hence, the facts of the said case are not applicable in the instant case. Therefore, it is clear that the provisions of section 80-lA shall be applicable only to the asses…

DCIT, Chennai vs. M/S. Neyveli Lignite Corporation Limited, Neyveli

In the result, the appeals of the Revenue as well as the appeal of the assessee are partly allowed

ITA 1983/CHNY/2011[2008-09]Status: DisposedITAT Chennai28 Apr 2017AY 2008-09

Bench: Shri N.R.S. Ganesan & Shri D.S.Sunder Singh

…ased on the reasons cited in the paragraph (i) & (ii) above. Accordingly, the deduction claimed by the assessee u/s.80-IA of the Income-tax Act cannot be accepted. iv) The decision of the Supreme Court in the case of Textile Machinery Corporation Ltd Vs CIT (107 ITR 195) cannot be accepted in the assessee’s case due to the fact that the above said decision of the Honorable Supreme Court was purely related to the restructuring of the business. Hence, the facts of the said case are not applicable in the instant case. Therefore, it is clear that the provisions of section 80-lA shall be applicable only to the asses…

M/S. Perfetti Van Melle India Pvt. Ltd., Gurgaon vs. DCIT, Gurgaon

In the result, this appeal is partly allowed for statistical purpose

ITA 789/DEL/2016[2011-12]Status: DisposedITAT Delhi28 Apr 2017AY 2011-12

Bench: Shri N. K. Saini & Smt Suchitra Kamble

Section 143(3)Section 144CSection 43(1)Section 80Section 80ISection 92C

…imed by the assessee. It is also evident that the assessee has basically taken over the business of the Manesar Unit once it exhausted its claim of deduction u/s 80IC. The Hon’ble Apex Court has held in case of Textile Machinery Corporation Ltd. v. CIT [1977] 107 ITR 195 (SC) that reconstruction of business involves the idea of substantially the same persons carrying on substantially the same business. Thus the claim of deduction is liable to be disallowed on this ground as well. It is evident that the assessee has claimed deduction u/s 80IC by adopting colourable device to evade tax. The Hon’ble Apex Court has h…

ITO 8(3)(1), Mumbai vs. Shree Laxmi Infosolutins & Jewelery Ltd, Mumbai

Appeal is allowed

ITA 6586/MUM/2014[2009-10]Status: DisposedITAT Mumbai11 Jan 2017AY 2009-10
For Appellant: Shri K.A. VaidyalingamFor Respondent: Shri B.B. Rajendra Prasad (CIT DR)
Section 10ASection 143(3)Section 253Section 254(1)

…gs:- 2.1 I have considered the submissions of the Ld. Counsel and in my opinion the appellant is entitled to claim the deduction u/s 10AA because of the following reasons: (i) The decisions of Hon’ble Supreme Court in the case of Textile Machinery Corporation 107 ITR 195 and jurisdictional Hon’ble Bombay High Court decision in CIT vs. Gaekwar Foam & Rubber Co. (35 ITR 662) are clearly in appellant's favour as to what constitutes reconstruction of a business or not. Further, the decision’s of Hon'ble Kerala High Court in the case of CIT vs. Trauancore Rayons Ltd. & Ant. (164 ITR 134) and the Hon 'ble Patna High Co…

The West Coast Paper Mills Ltd, Mumbai vs. Addl CIT 1(3), Mumbai

Appeal stands allowed for Statistical Purposes

ITA 1965/MUM/2015[2010-11]Status: DisposedITAT Mumbai06 Jan 2017AY 2010-11
For Appellant: Shri Vijay Mehta -ARFor Respondent: Ms. Sunita Billa-DR
Section 14ASection 254(1)Section 80Section 80I

…tta High Court confirmed the order of the Tribunal and the apex court has dismissed the appeal of the revenue by taking support from its own decision in Textile Machinery Corporation Ltd. v/s CIT, 107 ITR 195 and CIT v/s Indian Aluminium Company Ltd. v/s CIT, 107 ITR 195 AND CIT v/s Indian Aluminium Company Ltd., 108 ITR 367. Therefore, the stand of the Assessing Officer cannot be accepted. Again the Calcutta High Court was faced with the same set of facts in the case of CIT v/s Hindustan Motors Ltd., 127 ITR 210. The assessee in that case was engaged int eh manufacturing of motor cars. It established certain anc…

Worldwide Software (Exports), Mumbai vs. ITO 18(2)(3), Mumbai

ITA 1938/MUM/2016[2009-10]Status: DisposedITAT Mumbai30 Nov 2016AY 2009-10

Bench: Shri Amit Shukla () & Shri Ashwani Taneja ()

Section 10BSection 10B(7)Section 143(3)Section 234Section 234BSection 271Section 271(1)(c)Section 92ASection 92E

…preted in the light of judicial precedents existing in this connection. In this regard, reliance is placed on the following case laws wherein the interpretation of the term 'splitting up' and 'reconstruction' in referred: • Textile Machinery Corporation Ltd. (107 ITR 195) (SC) The Supreme Court held that to constitute reconstruction, there must be formation of new unit by transfer of assets of the existing business to the new industrial undertaking. In the instant case industrial undertaking is formed by splitting up of the existing business undertaking since that can take place only when the substantial assets o…

Worldwide Software (Exports), Mumbai vs. ITO 18(2)(3), Mumbai

ITA 1933/MUM/2016[2004-05]Status: DisposedITAT Mumbai30 Nov 2016AY 2004-05

Bench: Shri Amit Shukla () & Shri Ashwani Taneja ()

Section 10BSection 10B(7)Section 143(3)Section 234Section 234BSection 271Section 271(1)(c)Section 92ASection 92E

…preted in the light of judicial precedents existing in this connection. In this regard, reliance is placed on the following case laws wherein the interpretation of the term 'splitting up' and 'reconstruction' in referred: • Textile Machinery Corporation Ltd. (107 ITR 195) (SC) The Supreme Court held that to constitute reconstruction, there must be formation of new unit by transfer of assets of the existing business to the new industrial undertaking. In the instant case industrial undertaking is formed by splitting up of the existing business undertaking since that can take place only when the substantial assets o…