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2018 (3) TMI 1868 - AT - Income TaxDeduction @100% u/s 80IC - Assessee claimed such deduction for first five years as there was no bar in the statute to claim deduction after undertaking substantial expansion within the prescribed period - HELD THAT:- We find that the AO by placing reliance in the case of M/s Hycron Electronics [2018 (3) TMI 1867 - ITAT CHANDIGARH] which confirmed the order of CIT(A) the disallowance of claim @ 100% made by the AO, we find the said decision of Chandigarh benches were challenged by a group of assesses before the Hon’ble High Court of Himachal Pradesh [2017 (12) TMI 69 - HIMACHAL PRADESH HIGH COURT] We find that the Hon’ble High Court was pleased to quash the order of the Tribunal in confirming the order of CIT(A) and AO in denying allowance @100% u/s 80IC of the Act and held that Sub clause (v) of sub section 8 of section 80IC of the Act contemplates more than one ‘Initial assessment year’ and for a unit which completes substantial expansion, initial assessment year means A.Y. relevant to the previous year in which it completes substantial expansion. In the present case, claim of the assessee was that substantial expansion was taken place during the previous year i.e. 2012-2013 and claimed deduction @ 100% for A.Y.2013-14. Assessee is entitled to claim deduction @100% u/s 80IC of the Act. We therefore find no infirmity in the order of CIT(A). Accordingly grounds raised by the revenue in 1 and 2 are dismissed.
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