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2018 (4) TMI 1694 - AT - Income TaxClaim of deduction u/s 80IC - rejecting the claim of deduction @ 100% of eligible profits - entitlement to the assessee to said deduction as it was the 9th year of production - substantial expansion in 2010-11 financial year would not entitle the assessee to said deduction as it was the 9th year of production - HELD THAT:- Assessee's claim of deduction u/s 80IC to the extent of 100% of eligible profits from the manufacturing activity was limited to 25% by the AO and the CIT(A) relying upon the decision in the case of Hycron Electronics V ITO [2015 (6) TMI 725 - ITAT CHANDIGARH] confirmed the order the tax authorities taking into consideration the fact that the assessee started its business activity in July,2005 and the initial assessment year for claim of deduction u/s 80IC of the Act was 2006-07 assessment year rejecting the claim of deduction @ 100% of eligible profits on the ground that substantial expansion in 2010-11 financial year would not entitle the assessee to said deduction as it was the 9th year of production. Case is remitted back to the file of the AO with the direction to give necessary relief in accordance with law after giving the assessee a reasonable opportunity of being heard in terms of the decision of the jurisdictional High Court. - Appeal of the assessee is allowed for statistical purposes.
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