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2016 (9) TMI 1578 - AT - Income TaxDeduction u/s 80I in respect of the profits from the new industrial undertaking - assessee claims that it had established new unit in assessment year 1991-92, on which it was entitled to the benefit u/s 80I - HELD THAT:- Where the first year of deduction of claim of deduction u/s 80I by the assessee is assessment year 1991-92 and where the aforesaid deduction has been allowed to the assessee vide order passed under section 143(3) of the Act, the question arises is whether the same could be disturbed in the absence of any change in facts. The answer to the same is ‘No’. The authorities below have no power to disturb the continuity of claim of deduction u/s 80I for the stipulated period provided under the Act, where once such a claim has been allowed to the assessee in the initial assessment year, since that is the year when all the conditions available under the section have to be fulfilled by the assessee and where the assessee fulfils the same, it is entitled to claim the deduction, unless there is any change in facts and circumstances. Thereafter, from year to year, till the stipulated period expires, the assessee is entitled to claim the said deduction under section 80I. Grant of deduction disturbed in assessment year 1995-96 is deemed to have been allowed to the assessee, since the time period for allowing the appeal effect has expired We hold that where the benefit of deduction was available for particular number of years, unless the same is withdrawn in the first year, it cannot be withdrawn for the subsequent years, particularly when there is no change in the facts. Applying the ratio laid down in CIT Vs. Paul Brothers [1992 (10) TMI 5 - BOMBAY HIGH COURT], M/s. Direct Information Pvt. Ltd. Vs. ITO [2011 (9) TMI 137 - BOMBAY HIGH COURT] and subsequently in CIT Vs. Western Outdoor Interactive Pvt. Ltd. [2012 (8) TMI 709 - BOMBAY HIGH COURT] we hold that the assessee is entitled to the deduction claimed under section 80I of the Act in assessment year 1992-93, wherein the first year of claim of deduction was assessment year 1991-92 and same has not been disturbed by any of the authorities till date. The Assessing Officer is thus, directed to allow the said claim of assessee.
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