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2023 (7) TMI 456 - ITAT DELHIRevision u/s 263 - as per CIT AO failed to examine the issue of deduction in excess of eligibility u/s 80IC - expansion of industrial unit of the assessee was undertaken by installing new plan and machinery in the F.Y. 2011-12 and it was more than 50% of existing plant and machinery for which assessee claimed - HELD THAT:- As it is only industrial undertaking which is already claiming 100% deduction u/s 80IC as newly established unit cannot be allowed to claim 100% deduction u/s 80IC on substantial expansion undertaken by the same firm simultaneously. AO was apprised on behalf of the assessee that in the case of Hycron Electronics[2015 (6) TMI 725 - ITAT CHANDIGARH] has held the issue in favour of the assessee and the Chandigarh Tribunal judgment has been reversed. However, Ld. AO observing that the revenue may be filing a SLP, thus, to protect the interest of revenue 75% disallowance was made. DR submitted that in a subsequent judgment in the case of CIT vs. M/s. Classic Binding Industries [2018 (8) TMI 1209 - SUPREME COURT] has settled the issue. The assessee will be entitled for deduction of remaining assessment years @ 25% as there cannot be two initial assessment years within the span of 10 years from the initial assessment year. DR has escaped the judgment of DCIT vs. M/s. Aarhan Softronics [2019 (2) TMI 1285 - SUPREME COURT] wherein judgment in Classic Binding Industries case was held to be not good law. The Bench is inclined to allow the appeal for statistical purposes and direct the Ld. AO to consider the aforesaid judgments of Hon’ble Supreme Court of India, and pass afresh order u/s 263 / 143(3) of the Act.
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