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2016 (3) TMI 1239 - HC - Income TaxEligibility to the benefit of section 80-IB(11A) - whether Tribunal was right in law in holding that the assessee is entitled to deduction of 25 per cent. and not 100 per cent. u/s 80-IB(11A) as claimed by the assessee? - Held that:- An undertaking like the assessee, which derives profits from the business of processing, preservation and packaging of fruits or vegetables would be entitled to deduction under section 80-IB(11A) from the initial assessment year, viz., the assessment year relevant to the previous year in which it begins such business. The appellant began its business with effect from June 2, 2001 and hence, the initial assessment year in the case of the appellant would be assessment year 2002-03. Since, assessees like the appellant became entitled to the benefit of deduction under section 80-IB(11A) only with effect from April 1, 2005, for the assessment years under consideration, since five years had already elapsed from the initial assessment year, the appellant was entitled to deduction of only 25 per cent. of the profits and gains from its business. The Tribunal was, therefore, wholly justified in holding that no artificial definition to the initial assessment year can be put by holding that the initial assessment year would be 2005-06 even though the assessee has commenced its business with effect from June 2, 2001. It is by now well-settled that in a taxing statute, the provisions have to be construed strictly and there is no room for equity therein. Under the circumstances, no infirmity can be found in the view adopted by the Tribunal, which is clearly in consonance with the plain language of the statute.
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