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2018 (1) TMI 1494 - AT - Income TaxDeduction u/s 80IC - benefit of substantial expansion for deduction u/s 80IC - HELD THAT:- As gone through the order of the Hon’ble Himachal Pradesh High Court in the case of Stovecraft [2017 (12) TMI 69 - HIMACHAL PRADESH HIGH COURT] . Admittedly in all the above appeals the assessee was a new undertaking having commenced operations after 07-01-2003 and had already claimed deduction u/s 80IC @100% of its profits for a period of five years. In the impugned Years, the assessee had claimed deduction @100% of its profits since it had undertaken substantial expansion of its eligible unit which was denied following the order of the ITAT in the case of Hycron Electronics [2015 (6) TMI 725 - ITAT CHANDIGARH] . The Hon’ble High Court we find has set aside the order of the ITAT in the case of Hycron Electronics [2015 (6) TMI 725 - ITAT CHANDIGARH] ruling that the new undertakings set up after 07-01-2003 are entitled to deduction @100% of the profits on carrying out substantial expansion. In view of the above order of the Hon’ble Himachal Pradesh High Court, we set aside the order of the CIT(A) and direct the AO to grant the assessee deduction of hundred percent of its eligible profits, as per the ruling of the jurisdictional High Court in this regard in the case of ‘M/s Stovekraft India vs. Commissioner of Income Tax’ [2017 (12) TMI 69 - HIMACHAL PRADESH HIGH COURT] . The grounds raised by the assessee in this regard are therefore allowed Disallowance pertaining to interest and bad debts - increasing the business profits of the assessee - HELD THAT:- In the earlier part of our order that the assessee is entitled to claim deduction of its profits @ 100% in the impugned year. Consequently the additions so made are entitled to deduction u/s 80IC of the Act, as accepted by the Department also vide the CBDT Circular reproduced above, resulting in no addition to the taxable income of the assessee - we direct that the addition made on account of interest and bad debts be deleted.
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