A 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.
in my views due to suspension whole profit will be allowed as deduction and not only profit from expanded capacity
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.
Can sombody throw the light ?
CAclubindia
