- (1.) The assessee M/s. Shri Ram Flour Mills India (Private) Limited has preferred this appeal under Section 260-A of the Income Tax Act, 1961 (hereinafter referred to as an Act) against the order of the Income Tax Appellate Tribunal dated 5th October 2005 by which the appeal filed by the department in respect of the assessment year 2001-02 has been allowed.
(2.) The assessee company was incorporated on 14.10.1999 for running a Flour Mill. There was another company known as M/s. M.C. Roller Flour Mills Limited. It had two units known as M.C. Roller Floor Mills and Shri Ram Flour Mills. The second unit of the aforesaid company was purchased by the assessee as a whole including its plant and machinery. Accordingly, the said unit Shri Ram Flour Mills stood transferred to the assessee and came under its control and management.
(3.) Section 80-IB of the Act provides for certain percentage of deductions in computing the total income of the assessee from its profits and gains. The benefit of such deduction is permissible if the industrial undertaking fulfils certain conditions inter-alia:- (i) It has not been formed by splitting up, or the reconstruction of a business already in existence; and (ii) It is not formed by the transfer to a new business of machinery or plant previously used for any purpose.;