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2019 (1) TMI 531 - AT - Income TaxDeduction claimed u/s 80IC - restriction to 30% of the eligible profits as against 100% claimed by the assessee on account of substantial expansion carried out by it - assessee firm is engaged in the manufacturing of axels, gears and shafts having units at Baddi and Rudrapur - in the seventh year of production since the first time the assessee carried out substantial expansion - Held that:- The issue was now settled and covered against the assessee by the decision of the Hon'ble Apex Court in the case of CIT Vs M/s Classic Binding Industries & Ors. [2018 (8) TMI 1209 - SUPREME COURT OF INDIA] wherein held once the assessees had started claiming deduction under Section 80-IC and the initial Assessment Year has commenced within the aforesaid period of 10 years, there cannot be another initial Assessment Year thereby allowing 100% deduction for the next 5 years also when sub-section (3), in no uncertain terms, provides for deduction @ 25% only for the next 5 years. It may be asserted again that the assessee's accept the legal position that they cannot claim deduction of more than 10 years in all under Section 80-IC. - Decided in favour of revenue Quantification of deduction u/s 80IC - the loss of one priority unit is to be set off against the profit of the other priority unit - Held that:- Since the issue involved in the present case is identical to that in the case of Milestone Gears [2019 (1) TMI 421 - ITAT CHANDIGARH] the decision rendered by the ITAT in the said case would squarely apply to the present case also following which we hold that the assessee is eligible to claim deduction on the profits of each individual undertaking without resorting to netting of the profit and loss of the eligible undertakings. - Decided in favour of assessee
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