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2007 (6) TMI 253 - AT - Income TaxDeductions u/s 80HH and 80-I - Industrial undertaking - no change in the nature of activities from earlier years - income from repair of transformers of U.P. State Electricity Board ("UPSEB") - HELD THAT:- It is an admitted fact that the assessee-company is claiming deductions under ss. 80HH and 80-I of the Act since asst. yr. 1992-93. The Department has allowed deductions under ss. 80HH and 80-I for the asst. yrs. 1992-93, 1993-94, 1994-95, 1995-96, 1996-97 and 1997-98. Even the AO has allowed deductions under ss. 80HH and 80-I to the assessee for the AY 1998-99. The deductions, in question, are available to an assessee for 8 years and the year under consideration is the last year and the year under consideration is the last year. The learned CIT(A) has not brought any material on record to show that there was any change in the activities of the assessee as compared to earlier years. Thus it is clear that since asst. yrs. 1992-93 to 1997-98, the assessee has been consistently getting deductions under ss. 80HH and 80-I of the Act. In our considered view, the learned CIT (A) was not justified in withdrawing the deductions in question. Hon'ble Delhi High Court in the case of Lovely Bal Shiksha Parishad[2003 (10) TMI 25 - DELHI HIGH COURT] held that there was no change in the nature of activities and the assessee had been granted exemption u/s 10(22) of the IT Act not only in respect of earlier years but subsequent year as well, the assessee was entitled to the exemption in the asst. yr. 1991-92. In this case also, the Hon'ble Delhi High Court has applied the ratio laid down by the Hon'ble Supreme Court in the case of Radhasoami Satsang vs. CIT [1991 (11) TMI 2 - SUPREME COURT]. Following the above referred cases. We, therefore, reverse the order of the learned CIT(A) and restore that of the AO. Accordingly, we allow the appeal filed by the assessee. In the result, the appeal is allowed.
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