Case Law Details
Pr. CIT Vs. Macquarie Global Services Pvt. Ltd. (Delhi High Court)
The respondent-assessee had set up a new unit in Special Economic Zone (SEZ) income from which was claimed as exempt under Section 10AA of the Act for a period of ten years commencing from the Assessment Year 2010-11. Exemption was allowed in the Assessment Years 2011-12 and 2012-13 but was disallowed by the Assessing Officer in the Assessment Year 2013-14, citing clause (ii) to sub-section (4) to Section 10AA of the Act.
It is an accepted and admitted position that the unit in the SEZ had commenced business in the period relating to the Assessment Year 2011-12. The assessee had claimed and was allowed deduction under Section 10AA in the Assessment Years 2011-12 and 2012-13. The Assessing Officer did not disallow exemption claim under Section 10AA in the assessment orders passed after scrutiny under Section 143(3) of the Act.
Tribunal has accepted that the new unit was a separate identity for its income to qualify for exemption under Section 10AA for it was not formed and created by ‘splitting up’ or ‘reconstructing’ the existing business. The new unit was also not formed by transferring any machinery or plant previously used. Fresh investment was made in the new unit. The revenue earning and profits generated were clearly attributable to the new unit.
In view of the aforesaid factual background and the earlier decisions of this court, we do not find any substantial question of law arises for consideration. The appeal is dismissed with no order as to costs.
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