Case Law Details
Lakshmi Ram Thakuria Vs ITO (ITAT Guwahati)
Assessee has two industrial unit Viz: – M/s Charu Engineering Industries, an existing industrial undertaking established and commenced its commercial production w.e.f 26.12.1994 in terms of the erstwhile North East Industrial Policy, 1997. The assessee availed exemption as per the Industrial Policy, 1997.
The assessee unit subsequently undergone substantial expansion in terms of North East Industrial & Investment Promotion Policy, 2007 (NEIIP, 2007) and commenced its commercial production w.e.f. 02.05.2008 after undergoing substantial expansion in its plant & machinery. Copy of the North East Industrial Policy, 1997 and NEIIP, 2007 is enclosed in paper book page 29.
The assessee availed benefit of Income Tax exemption in terms of Sec. 80-IA and 80IB and 10C in the earlier assessment years and availed benefit of exemption under Chapter VIA of the Income Tax Act 1961 and after undergoing substantial expansion of its existing plant and machinery and production capacity by investing more than 25 % of its existing capital investment in terms of NEIIP,2007 in the Financial Year 2008-09 .
The other one M/s. Charu Innovation Department and Industries, a new Industrial Undertaking, established in the year 2011-12 and commenced its commercial production w.e.f 23.11.2011, engaged in production of polyethylene Water Storage Tank and other plastic articles such as, Dustbin, Traffic Signal Point and injunction moulded Item and moulded filter etc. We note that after implementation of North-East Industries Investment Promotion Policy (NEIIP), 2007, the Assessee undergone modernization of its unit M/s. Charu Engineering Industries, in the year 2008, w.e.f 02.05.2008 by additional capital outlay in plant & machinery amounting to Rs. 29,85,6 1 1/- in comparison to the previous capital outlay in plant & machinery (i.e prior to the expansion/ modernization) Rs. 22,51,982/-, an increase in capital outlay by 133 % of the initial capital outlay in the financial year 2008-09. Therefore, the Assessee is eligible for income tax exemption from the Financial year 2008-09 and onwards due to modernization in its plant & machinery by infusing additional capital investment by more than 25 % of the initial investment in plant & machinery as envisaged in clause (iii) of sub-sec. 7 of Sec. 80-IE of the Income Tax Act, 1961, effective from 01.04.2008.
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