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2012 (12) TMI 722 - AT - Income TaxClaim of deduction u/s 80HH - denial - Held that:- Provision providing exemption, concession or exceptions in a fiscal statute has to be interpreted strictly. A person who claims exemption or concession, is required to establish clearly that he is covered by provision concerned and as per this decision of the constitutional Bench, in the case of any ambiguity, benefit will give go to the State. Section 80HH states that an industrial undertaking has to begin manufacture or production in a backward area. Mere intention to begin manufacture or production and making investment would not suffice for that purpose CIT(Appeals) fell in error in giving very liberal interpretation to Section 80HH and holding that assessee's intention and investment to start an industry would suffice and actual manufacture or production could have been started even after the location went out of backward areas. There has to be actual manufacture or production. Hon'ble Apex Court in the case of CCE v. Hari Chand Shri Gopal [2010 (11) TMI 13 - SUPREME COURT OF INDIA] unequivocally held that provision providing exemption, concession or exceptions in a fiscal statute has to be interpreted strictly. A person who claims exemption or concession, is required to establish clearly, therefore set aside the orders of CIT(Appeals) and hold that assessee was not eligible to claim deduction under Section 80HH - against assessee.
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