Splitting up or reconstruction or transfer of used assets of its non STPI unit

IT : Where STPI unit established by assessee for which section 10A deduction was claimed, was not formed by splitting up or reconstruction or transfer of used assets of its non STPI unit , assessee would be entitled for said deduction
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[2015] 60 taxmann.com 127 (Karnataka)
HIGH COURT OF KARNATAKA
Commissioner of Income-tax
v.
Quest Informatics (P.) Ltd.*
N.KUMAR AND B. VEERAPPA, JJ.
IT APPEAL NOS. 188 TO 190 OF 2014
JANUARY  5, 2015
Section 10A of the Income-tax Act, 1961 - Free trade zone (Splitting up or reconstruction) - Assessment years 2007-08 to 2009-10 - Assessee, an Indian company, was engaged in business of computer software development and business process outsourceing - During financial year 2005-06, assessee was running its business from a non-STPI unit under a rented premises - During said period, assessee applied for permission to set up STPI unit at ground floor of said premises - STPI authorities granted approval for setting up of STPI unit at ground floor of said premises - STPI authorities duly granted approval - Assessee started its business in newly set up unit during financial year 2006-07 - Assessee also continued to carry out its business from non-STPI unit also - However, separate books of account were maintained by assessee for STPI unit and non-STPI unit - Whether where STPI unit established by assessee for which section 10A deduction was claimed was not formed by splitting up or reconstruction or transfer of used assets of an existing unit, assessee would be entitled for said deduction - Held, yes [Paras 3 and 4] [In favour of assessee]