80IC in income tax
This query is : Resolved
21 December 2007
in 80ic there is a condition for claiming it is:-
Business is not formed by the transfer to a new business of plant & machinery previosly used for any purpose.(more than 20%)
if we aquire old plant machinery on hire, than it will be covered by above or not ?and we will be not eligible to the deduction or not?
old machine hired can be more than 20% of new plant & machinery purchased?
Business is not formed by the transfer to a new business of plant & machinery previosly used for any purpose.(more than 20%)
if we aquire old plant machinery on hire, than it will be covered by above or not ?and we will be not eligible to the deduction or not?
old machine hired can be more than 20% of new plant & machinery purchased?
21 December 2007
In my opinion your hiring of the old macinery will get hit by Section 2(47)(vi).
22 December 2007
sec 2(47)(vi) is attracted olnly when by virtue of membership of the company he has been allotted an immovable property.
we are letting the plant & machinery and we are not tranfering any right
we are letting the plant & machinery and we are not tranfering any right
22 December 2007
It can get hit by 2 (47)(i)itself. I am just reproducing the interpretation of 'transfer' as given in Taxman Vol 3.
TRANSFER
1. The word transfer is comprehensive and is regarded generally as comprehending within its scope transfers both voluntary and involuntary. In the absence of distinct genus or category, no presumption can arise that the word transfer must be construed in the sense of a voluntary act of transfer since sale, exchange or relinquishment are, in the normal acceptation of those terms, voluntary acts. The words (a) sale, (b) exchange, (c) relinquishment, and (d) transfer must, accordingly, be given their plain and natural meaning and there is no justification for restricting the wide comprehension of the last of the four words to voluntary transfers by the application of the ejusdem generis rule - Mangalore Electric Supply Co. Ltd. v. CIT [1978] 113 ITR 655 (SC).
2.In its general sense, the expression transfer of property connotes the passing of rights in property from one person to another. In one case, there may be a passing of the entire bundle of rights from the transferor to the transferee. In another case, the transfer may consist of one of the estates only out of all the estates comprising the totality of rights in the property. In a third case, there may be a reduction of the exclusive interest in the totality of rights of the original owner into a joint or shared interest with other persons. An exclusive interest in property is a larger interest than a share in that property. To the extent to which the exclusive interest is reduced to a shared interest, it would seem that there is a transfer of interest - Sunil Siddharthbhai/Kartikeya V. Sarabhai v. CIT [1985] 156 ITR 509 (SC).
3.The expression transfer in section 2(47) must be read widely and not narrowly. The definition denotes extension and cannot be treated as restricted - Blue Bay Fisheries (P.) Ltd. v. CIT [1987] 31 Taxman 393/166 ITR 1 (Ker.).
4. There are different shades of meaning of the word transfer, viz. to make over possession of to another, a delivery of title or property from one person to another, to displace from one surface to another, removal, displace. Definition of transfer in section 2(47) is an inclusive one and does not exclude the contextual or the ordinary meaning of the word transfer - CIT v. Narang Dairy Products [1996] 85 Taxman 375/219 ITR 478 (SC).
TRANSFER
1. The word transfer is comprehensive and is regarded generally as comprehending within its scope transfers both voluntary and involuntary. In the absence of distinct genus or category, no presumption can arise that the word transfer must be construed in the sense of a voluntary act of transfer since sale, exchange or relinquishment are, in the normal acceptation of those terms, voluntary acts. The words (a) sale, (b) exchange, (c) relinquishment, and (d) transfer must, accordingly, be given their plain and natural meaning and there is no justification for restricting the wide comprehension of the last of the four words to voluntary transfers by the application of the ejusdem generis rule - Mangalore Electric Supply Co. Ltd. v. CIT [1978] 113 ITR 655 (SC).
2.In its general sense, the expression transfer of property connotes the passing of rights in property from one person to another. In one case, there may be a passing of the entire bundle of rights from the transferor to the transferee. In another case, the transfer may consist of one of the estates only out of all the estates comprising the totality of rights in the property. In a third case, there may be a reduction of the exclusive interest in the totality of rights of the original owner into a joint or shared interest with other persons. An exclusive interest in property is a larger interest than a share in that property. To the extent to which the exclusive interest is reduced to a shared interest, it would seem that there is a transfer of interest - Sunil Siddharthbhai/Kartikeya V. Sarabhai v. CIT [1985] 156 ITR 509 (SC).
3.The expression transfer in section 2(47) must be read widely and not narrowly. The definition denotes extension and cannot be treated as restricted - Blue Bay Fisheries (P.) Ltd. v. CIT [1987] 31 Taxman 393/166 ITR 1 (Ker.).
4. There are different shades of meaning of the word transfer, viz. to make over possession of to another, a delivery of title or property from one person to another, to displace from one surface to another, removal, displace. Definition of transfer in section 2(47) is an inclusive one and does not exclude the contextual or the ordinary meaning of the word transfer - CIT v. Narang Dairy Products [1996] 85 Taxman 375/219 ITR 478 (SC).
25 December 2007
thanks a lot
You need to be the querist or approved CAclub expert to take part in this query .
Click here to login now
Click here to login now
Similar Resolved Queries
Unanswered Queries
- ITR filing obligation due to savings deposit
- ITC availability for BOLERO-HILUX (HIGH AT, M1G) HLXX0
- Joint Account Closure
- TDS-Fixed assets
- 139(4) for ITR-5- audit
- To Keep Records
- Can Stamp duty taken as a expense
- Are reflected in 2B in GST portal
- Registartion of trust
- Advice on How to calculate the peak balance needed for schedule FA in India for US checking account?
- 17(5)(d) of GST
- Reversal of unutilized ITC can be paid through ITC
- Invoices not transmitted to ICEGATE because of non-authentication of Aadhaar
- GSTR ANNUAL RETURN 9
- Classification of unclassified authorised capital
- GST registration
- Royalty TDS for brass
- Spl02 waiver of interest and penalty
- Regarding Claim of ITC of FY 2020-21
- Form inc-24
Trending Online Classes
-
25 Hours GST Scrutiny of Return and Notice Handling(With Recording)
Industry Expert14 February 2025 -
Survey, Search and Seizure under Income Tax Act 1961
CA Hari Agarwal
CAclubindia
