TMI Blog2021 (4) TMI 52X X X X Extracts X X X X X X X X Extracts X X X X ..... L/2018 - - - Dated:- 24-3-2021 - Shri N. K. Billaiya, Accountant Member And Ms Suchitra Kamble, Judicial Member For the Appellant : Sh. Mukesh Thakur, Sr. Adv For the Respondent : Sh. Madhur Aggarwal, Adv ORDER PER SUCHITRA KAMBLE, JM This appeal is filed by the assessee against order dated 18/12/2017 passed by CIT(A)-4 New Delhi for assessment year 2013-14. 2. The grounds of appeal are as under:- 1. On the facts and in the circumstances of the case the Ld CIT(A) erred in law in deleting the addition of Rs. addition of ₹ 5,68,44,423/- made by the Assessing officer on account of disallowance of deduction u/s 80IC by restricting deduction u/s 80IC of IT Act, 1961 @ 30% of the profits of undertaking as against deduction claimed by the assessee 100% of profits of undertaking at ₹ 8,12,06,319. 2. On the facts and circumstances of the case and in law the Ld CIT(A) erred in holding that there can be more than one initial Assessment year for the purpose of deduction u/s 80IC of the Income Tax Act, 1961 whereas the there is neither concept of more than one initial assessment year not intention of legislature behind section of 80IC of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sequent Assessment Years, the Tribunal has allowed identical issues in favour of the assessee. 7. The Ld. DR relied upon the assessment order but submitted that all the issues contested in Revenue s appeal is decided against the revenue for Assessment Year 2014-15 being ITA No. 3344/Del/2018 and Assessment Year 2015-16 ITA No. 299/Del/2019 order dated 18/10/2019. 8. We have heard both the parties and perused the material available on record. It is seen that for Assessment Year 2012-13 in respect of amalgamating company i.e. Herbs Specialties Vs. DCIT (ITA Nos. 196 197/CHD/2017 A.Y. 2012-13 and 2013-14 order dated 27/3/2018), the Tribunal has decided the issue of 80IC in assessee s favour. Besides this, for Assessment Year 2014-15 and 2015-16, the Tribunal also has decided the similar issue thereby stating that the issue is already settled in light of the Hon'ble Supreme Court decision in case of Aarham Softronics Civil Appeal Nos. 1784/2019 and thus, the issue is squarely covered in favour of the assessee. The Tribunal held as under: 6. We have heard the rival submission and perused the relevant material on record. As per the provision of section 80IC(2) of the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... initions of initial assessment year in the two sections, viz. Sections 80-IB and 80-IC are materially different. The definition of initial assessment year under Section 80-IC has made all the difference. Therefore, we are of the opinion that the aforesaid judgment does not lay down the correct law. (b) An undertaking or an enterprise which had set up a new unit between 7th January, 2003 and 1st April, 2012 in State of Himachal Pradesh of the nature mentioned in clause (ii) of sub-section (2) of Section 80-IC, would be entitled to deduction at the rate of 100% of the profits and gains for five assessment years commencing with the initial assessment year . For the next five years, the admissible deduction would be 25% (or 30% where the assessee is a company) of the profits and gains. (c) However, in case substantial expansion is carried out as defined in clause (ix) of sub-section (8) of Section 80-IC by such an undertaking or enterprise, within the aforesaid period of 10 years, the said previous year in which the substantial expansion is undertaken would become initial assessment year , and from that assessment year the assessee shall been entitled to 100% deductions ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t of deduction at different rates of percentage stipulated under Section 80-IC. (c) Substantial expansion cannot be confined to one expansion. As long as requirement of Section 80-lC(8)(ix) is met, there can be number of multiple substantial expansions. (d) Correspondingly, there can be more than one initial Assessment Years. (e) Within the window period of 7.1.2013 upto 1.4.2012, an undertaking or an enterprise can be entitled to deduction @ 100% for a period of more than five years. (f) All this, of course, is subject to a cap of ten years. [Section 80-IC(6)]. (g) Units claiming deduction under Section 80-IC shall not be entitled to deduction under any other Section, contained in Chapter VI-A or Section 10A or 10B of the Act [Section 80- 1B(5)]. 7. Ld. DR fairly admitted that the issue is squarely covered by the above decision of the Hon'ble jurisdictional High Court. It was, however, submitted that the issue be restored to the file of the Assessing officers for verification as to whether the assessee has actually carried out the substantial expansion to be entitled to claim deduction u/s 80IC of the Act. 8. We do not agree to the above co ..... X X X X Extracts X X X X X X X X Extracts X X X X
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