Exemption under Section 10B of Income Tax Act not available to an Industrial undertaking taken over on lease

Hyderabad bench of the Income-tax Appellate Tribunal (the Tribunal) in the case of Synergies Casting Ltd. Vs. DCIT (ITA No. 864 & 1364/Hyd/2010) held that exemption under Section 10B of the Income-tax Act, 1961 (the Act) is not available to an undertaking taken over on lease. Further, the Tribunal held that in order to get the benefit of Section 10B of the Act, for the unexpired period, the taxpayer must prove that it is a successor to the predecessor company. Since the taxpayer was only a lessee it was not a successor to the lessor. Background Sub-section 2 to section 10B states that bene...