Deduction under section 10B availed subject to condition of 10 years from the date of first availment

Last updated: 24 July 2013

Court :
INCOME TAX APPELLATE TRIBUNAL

Brief :
The brief facts of the case are that assessee company has purchased an existing unit being run by M/s Motherson Sumy Systems Limited (for short MSSL). A part of the business of M/s MSSL comprising of an undertaking which was engaged in manufacturing metal and plastic from rubber was split from the rest of the business of M/s MSSL and was sold to a newly incorporated company by the name of M/s Woco Motherson Elastomer Limited (for short WMEL) which is assessee in the present case. The new company i.e. the assessee was incorporated on 16.3.2004 and was given a certificate of commencement of business by Registrar of Companies w.e.f. 30.4.2004. The assessee company took over the business of said undertaking sold by M/s MSSL on slump sale basis. The said undertaking was already registered as 100% Export Oriented Unit (EOU) was eligible for benefit u/s 10B of the Act and even was availing benefit of deduction u/s 10B of the Act. The assessee while filing the returns of income for the years under consideration continued to claim benefit of section 10B as in its opinion the assessee was eligible for benefit u/s 10B of the Act as the whole undertaking which was eligible for such benefit was taken over.

Citation :
Woco Motherson Elastomer Ltd., 2nd floor, Block-B-1, Mohan Cooperative Indl. Estate, Mathura Road, New Delhi. . (Appelant) Vs. DCIT, Circle-18 (1),New Delhi.(Respondent) AND Stay Application No. 70/Del/2013 In I.T.A. No.6056,234,235&5233/ Del /2011 Assessment year: 2005-06, 06-07,07-08 & 2008-09 Woco Motherson Elastomer Ltd., 2nd floor, Block-B-1, Mohan Cooperative Indl. Estate, Mathura Road, New Delhi. (Appelant) Vs DCIT, Circle-18 (1), New Delhi. (Respondent)