COMMISSIONER OF INCOME TAX Vs. MEGA PACKAGES

JUDGEMENT

(1.) This appeal has been preferred by the revenue under Section 260A of the Income Tax Act, 1961 (in short "the Act") against the order dated 31.5.2010 passed by the Income Tax Appellate Tribunal, Chandigarh, Bench "A" (hereinafter referred to as "the Tribunal") in ITA No. 1136/CHD/2009, relating to the assessment year 2006-07, claiming the following substantial question of law:-

(2.) We have heard learned counsel for the revenue.

(3.) Learned counsel for the revenue raised two fold submission in support of the appeal. According to the learned counsel, the provisions of Section 80-IA(12) of the Act were applicable in view of Section 80IC(7) of the Act. Under Section 80-IA(12) of the Act, the assessee is entitled to benefit of deduction under Section 80IC of the Act for the remaining unexpired period where there is amalgamation or demerger of an Indian Company. Therefore, this benefit could not be extended in cases where proprietorship concern was converted into partnership concern. Elaborating further, learned counsel urged that under Section 80-IC(4)(i) of the Act, any undertaking which is not formed by splitting up or by reconstruction of a business already in existence alone can derive benefit thereunder.