COMMISSIONER OF INCOME TAX Vs. SILICAL METALLURGIC LIMITED

JUDGEMENT

(1.) THE revenue has filed appeal against the order of the Income-tax Appellate Tribunal in I. T. A. No. 2091 (Mds)/95 for the assessment year 1992-93 dated 10. 09. 2003.

(2.) THE relevant assessment year is 1992-93. The facts culminated in filing of the appeal are as follows: the assessment of the assessee company for the relevant assessment year was completed under Section 143 (3) of the Income-tax Act on 22. 02. 1995 on a total income of Rs. 19,59,020/ -. In the course of the assessment proceedings the Assessing Officer found that the assessee had claimed deductions under Sections 80hh and 80i amounting to Rs. 7,72,709/- on the ground that the three units at Pondicherry, Avanashi and Hosur were being new industrial undertakings eligible for deduction under Section 80i. Besides, the Pondicherry unit, being situated in a backward area, was eligible for deduction under Section 80hh. The four units earlier belonged to different companies and were assessed separately. They were amalgamated with effect from 01. 04. 1990 and the business was carried on and continued by the assessee company, being the amalgamated company.

(3.) THE Assessing Officer was of the view that the assessee company which is the amalgamated company did not set up the aforesaid units and there was no provision in the Income Tax Act for granting the benefit of deductions under Sections 80 HH and 80i to the amalgamated company and thus rejected the claim of the assessee.