TMI Blog2016 (3) TMI 1239X X X X Extracts X X X X X X X X Extracts X X X X ..... siness. 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. - Tax Appeal Nos. 174, 175 and 176 of 2016 - - - Dated:- 30-3-2016 - Harsha Devani And G. R. Udhwani, JJ. For the Appellant : S. N. Soparkar, Senior Advocate with B. S. Soparkar, Advocate For the Respondent : -- JUDGMENT Harsha Devani, J. 1. These appeals under section 260A of the Income-tax Act, 1961 (hereinafter referred to as the Act ), at the instance of the assessee are directed against the common order dated June 19, 2015 passed by the Income-tax Appellate Tribunal, D Bench, Ahmedabad (hereinafter referred to as the Tribunal ) in I. T. A. Nos.1828/Ahd/2014, 1829/Ahd/2014 and 142 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... x (Appeals) but did not succeed. Against the order passed by the Commissioner (Appeals), the assessee preferred appeals before the Tribunal, which, by the impugned order, dismissed the appeals and sustained the order passed by the Commissioner (Appeals). 3. Mr. S. N. Soparkar, senior advocate, learned counsel appearing with Mr. Bandish Soparkar, learned advocate for the petitioner submitted that section 80-IB is a beneficial provision. It was contended that therefore, if the question was as regards eligibility to the benefit of section 80-IB(11A) of the Act, the same was required to be construed strictly, however, once it is held that the assessee is entitled to the benefit thereof, the statutory provision should be interpreted liberally in favour of the assessee. It was submitted that section 80-IB(11A) of the Act contemplates the grant of the benefit of 100 per cent. deduction for a period of five years from the initial assessment year in case of an undertaking deriving profit from the business of processing, preservation and packaging of fruits/vegetables and 25 per cent. for the subsequent five years. Thus, the statute contemplates the grant of the benefit for ten consecutiv ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... portunity given to him under the law and has grown in his business. It was submitted that, therefore, a liberal interpretation is required to be adopted which leans in favour of the assessee namely, that the assessee is entitled to the benefit of provisions of section 80-IB(11A) of the Act with effect from the date when the same came to be made applicable to the assessees like the appellant. It was, accordingly, urged that the appeals require consideration on the questions of law as proposed or as may be formulated by the court. 4. This court has considered the submissions advanced by the learned counsel for the appellant and has perused the orders passed by the authorities below. As can be seen from the impugned order, the Tribunal has, after referring to the provisions of section 80-IB(11A) of the Act, observed that an undertaking deriving profit from the business of processing, preservation and packaging of fruits or vegetables is entitled to 100 per cent. of the profits and gains derived from such undertaking for five assessment years, beginning with the initial assessment year and thereafter 25 per cent. of the profit and gains derived from such undertaking. Thus, 100 per c ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... not exceed ten consecutive assessment years and subject to fulfilment of the condition that it begins to operate such business on or after the 1st day of April, 2001. Thus, what is contemplated under the said provision is that an assessee is entitled to 100 per cent. deduction of the profits and gains derived for the first five assessment years beginning with the initial assessment year and thereafter, 25 per cent. of the profits and gains derived from the operation of such business in such a manner that the total period of deduction does not exceed ten consecutive assessment years and subject to fulfilment of the condition that it begins to operate such business on or after the 1st day of April, 2001. 6. In the facts of the present case, the appellant assessee having fulfilled the requirements for being eligible to deduction under section 80-IB(11A) of the Act, the Assessing Officer held that the assessee is entitled to the benefit thereunder. Insofar as undertakings deriving profits from the business of processing, preservation and packaging of fruits and vegetables are concerned, the same came to be included for the benefit of deduction under sub-section (11A) of section ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt year and thereafter twenty five per cent of the profits and gains derived from the operation of such business. However, the fact that the units like the assessee came to be included for entitlement to the benefit of deduction under section 80-IB(11A) of the Act only with effect from April 1, 2005 would not change the initial assessment year which has been clearly defined under section 80-IB(14)(c)(iv) of the Act to mean the assessment year relevant to the year in which the assessee commenced its business. Thus, 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) of the Act 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) of the Act only with effect from April 1, 2005, for the assessment years unde ..... X X X X Extracts X X X X X X X X Extracts X X X X
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