TMI Blog2015 (4) TMI 1259X X X X Extracts X X X X X X X X Extracts X X X X ..... on, there is no indication that these conditions had to be fulfilled by the assessee all the 10 years - When once the benefit of 10 years, commencing from the initial year, is granted, if the undertaking satisfy all these conditions initially, the undertaking is entitled to the benefit of 10 consecutive years If the object of the Legislature providing for the incentives is kept in mind and when a period of 10 years is prescribed, that is the period, probably, which is required for any industry to stabilize itself - Merely because an industry stabilizes early, makes profits, makes future investment in the said business, and it goes out of the definition of the small scale industry, the benefit u/s 80IB cannot be denied - If such a litera ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... arned Assessing Officer the CIT(A) have failed to appreciate that condition as regards unit being small scale is required to be satisfied/examined only in the first/initial year of claiming of deduction u/s. 801B(3). 2. The learned Assessing Officer has erred on facts and in law in denying claim of deduction of ₹ 4,13,58,579/- made u/s. 801B(3). The CIT(A) has erred in confirming the same. The appellant craves leave to add, alter, amend, delete or withdraw one or more grounds of appeal. 2. The brief facts of the case are that the assessee is engaged in the business of manufacturing, importing exporting chemicals etc. During the year under consideration, the assessee had claimed deduction of ₹ 4,13,58,579/- under se ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... fit of 10 years, commencing from the initial year, is granted, if the undertaking satisfy all these conditions initially, the undertaking is entitled to . the benefit of 10 consecutive years. The argument that, in the course of 10 years, if the growth of the industry is fast and it acquires machinery and the total value of the machinery exceeds ₹ 1 crore, it ceases to have the said benefit, do not follow from any of the provisions. It is true that there is no express provision indicating either way, what would be the position if the small scale industry ceases to be a small scale industry during the said period of 10 years. Because of that ambiguity., a need for interpretation arises. If we keep in mind the object of the Legislature p ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hereby they have denied the legitimate benefit, an incentive granted to the assessee. Both the said orders cannot be sustained. Therefore the substantial question of law is answered in favour of the assessee and against the Revenue. Hence we pass the following: ORDER 1. The appeal is allowed. The impugned order is hereby set aside. The original order of granting the benefit of deduction under Sec. 80IB, is restored. 5. Since the facts and issue under consideration are identical for the year under consideration, we do not find any reason to differ from the above stated findings of the Tribunal given in the own case of the assessee for earlier assessment year. Respectfully following the same, the issue is decided in favour of the ass ..... X X X X Extracts X X X X X X X X Extracts X X X X
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