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

Commissioner of Income Tax

ITA/151/2002HC Delhi31 May 2013
For Appellant: Mr N.P. SahniFor Respondent: Mr O.P. Dua, Sr. Adv. with Ms Babita
Section 143(1)Section 260ASection 80

…ed by importing new machinery from overseas and were in addition to the facilities already existing in Unit No.1. The learned counsel for the assessee relied on the decision of the Supreme Court in the case of Textile Machinery Corporation Ltd. v. CIT: (1977) 107 ITR 195 (SC) in support of his contention that in order for a new industrial undertaking to be established, there must be an emergence of a physically separate industrial Unit which may exist on its own as a viable Unit. It was submitted that this condition was fulfilled as Unit Nos.2 & 3 were capable to carry on their activity independent of Unit No. 1.…

Commissioner of Income Tax

ITA/480/2005HC Delhi31 May 2013
For Appellant: Mr N.P. SahniFor Respondent: Mr O.P. Dua, Sr. Adv. with Ms Babita
Section 143(1)Section 260ASection 80

…ed by importing new machinery from overseas and were in addition to the facilities already existing in Unit No.1. The learned counsel for the assessee relied on the decision of the Supreme Court in the case of Textile Machinery Corporation Ltd. v. CIT: (1977) 107 ITR 195 (SC) in support of his contention that in order for a new industrial undertaking to be established, there must be an emergence of a physically separate industrial Unit which may exist on its own as a viable Unit. It was submitted that this condition was fulfilled as Unit Nos.2 & 3 were capable to carry on their activity independent of Unit No. 1.…

The Commissioner of Income Tax vs. M/S Dcm Shriram Consolidated L

In the result, the appeal is dismissed

ITA/1187/2005HC Delhi21 Nov 2008

Bench: HON'BLE MR. JUSTICE BADAR DURREZ AHMED,HON'BLE MR. JUSTICE RAJIV SHAKDHER

For Respondent: Ms Prem Lata Bansal
Section 115JSection 260A

…the consolidated accounts of company. The separate audited accounts are filed with the return of income. (v) The desegregation of accounts and profits is sanctified by the Supreme Court decisions in ‗TISCO‘s case 48 ITR 123, The Textile Machinery case 107 ITR 195, Orient Paper case 176 ITR 110, Cellulose Products case 192 ITR 155 which referred to in extension in body of the order. (vi) The decision relied on by the A.O. relate to relief provision contained under chapter VI-A, whereas, the present case pertains to a taxing provision analogous to the TISCO and other Supreme Court cases referred to a…

Commissioner of Income Tax Delhi II vs. Mahaan Foods Ltd

ITA - 789 / 2007HC Delhi31 Mar 2008
Section 143(1)(a)Section 143(3)Section 80Section 80I

…ting industrial undertaking or formed by reconstruction or rehabilitation of an undertaking. In support of his contention, learned counsel for the Assessee has cited a decision of the Supreme Court reported as Textile Machinery Corporation Ltd. vs. CIT [1997] 107 ITR 195 (SC). ![](_page_7_Picture_1.jpeg) - 9. Section 80-IA (2) of the Act applies to any industrial undertaking which fulfills all the following conditions, namely:- - (i) It is not formed by splitting up, or the reconstruction, of a business already in existence. - (ii) It is not formed by the transfer to a new business of machinery or plant pre…

The Commissioner of Income Tax vs. M/S Mahaan Foods Ltd

ITA-1552/2006HC Delhi31 Mar 2008
Section 143(1)(a)Section 143(3)Section 80Section 80I

…ndustrial undertaking or formed by reconstruction or rehabilitation of an undertaking. In support of his contention, learned counsel for the Assessee has cited a decision of the Supreme Court reported as Textile Machinery Corporation Ltd. vs. CIT [1997] 107 ITR 195 (SC). 2008:DHC:1181-DB ITA No.1552/2006 Page 7 of 11 9. Section 80-IA (2) of the Act applies to any industrial undertaking which fulfills all the following conditions, namely:- (i) It is not formed by splitting up, or the recon…