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2018 (1) TMI 1340 - HC - Income TaxGrant of deduction under Section 80-IB - conditions for qualifying as a small scale industry was to be fulfilled in the initial year alone and not on year to year basis for grant of deduction - Held that:- The impugned order of the Tribunal dismissed the Revenue's Appeal by following the decision of the Karnataka High Court in M/s. Ace Multi Axes Systems Ltd Vs. DCIT (2014 (8) TMI 596 - KARNATAKA HIGH COURT) holding that the deduction under Section 80IB cannot be denied to an assessee who has been granted its benefit in the earlier years of assessment during the span of 10 years when exemption is available thereunder. The learned counsel for the parties very fairly point out that the decision of the Karnataka High Court in the case of M/s. Ace Multi Axes Systems (Supra) has now been reverted by the Apex Court in Deputy Commissioner of Income Tax Vs. ACE Multi Axes Systems Ltd. (2017 (12) TMI 372 - SUPREME COURT OF INDIA). Thus the condition of Section 80 - 1B of the Act are required to be satisfied on year to year basis. - Decided against assessee.
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