sumit sharma (CA-Service) (55 Points)
10 March 2012A company is doing some major expansion including building and Plant & Machineries. This expansion will increase the capacity substantially.
This is an eligible project as prescribed u/s 80 IB, if the expansion is considered as an undertaking.
Whether the company will be eligible for deduction u/s 80 IB for the profit earned from expanded capacity.
GOPAL AGGARWAL
(DOING NOTHING)
(1339 Points)
Replied 10 March 2012
in my views due to suspension whole profit will be allowed as deduction and not only profit from expanded capacity
sumit sharma
(CA-Service)
(55 Points)
Replied 13 March 2012
Thanks Gopal, I could not understand how the entire profit will be eligible for Deduction, as in my view 80 IB benefit available for setting up of new Industrial undertaking. Can you please advise whether the profit from expanded unit will be eligible ? If Yes then how the profit should be worked out as the expansion is being taken place at same premises. Do we need to keep separate set of books ?
Plz advise.
GST LIVE Certification Course - 42nd Weekend Batch(With Govt Certificate)
CAclubindia
