Deduction Under Section 80-IE

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This query is : Resolved

Querist : Anonymous

Querist : Anonymous (Querist)

18 May 2011 Actually i have a tea bagan in Assam and fulfilled the condition of Eligible business i.e. value of plant and machinary is more than 25% increament after 2007. And as i know tea is eligible article or thing... Now i want to know wether deductoin under section 80-IE can be claimed... kindly suggest in detail and refer some case law also...

CA PARAS BAFNA

CA PARAS BAFNA (Expert)

22 May 2011 Deduction U/s 80IE can be availed subject to certain restrictions -

a) The aforesaid business should not be formed by SPLITTING UP, or the RECONSTRUCTION of a business already in
existence; or
(b) Not formed by TRANSFER of Plant & Machinery used for any purpose.
However, if any ‘second-hand’ Plant & Machinery, used outside India by any person other than the assessee, & imported into India, shall not be regarded as Transfer of Plant & Machinery.
Further, where, the total value of the Plant & Machinery, transferred does not exceed 20% of the Total Value of Plant & Machinery used in the Business, the above condition is deemed to be
complied with.
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Separate Accounts are required for Eligible Business.
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Accounts are required to be Audited by a Chartered Accountant.
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To furnish Audit Report in Form No. 10CCB, alongwith Return of Income

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