Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2019 (2) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2019 (2) TMI 635 - AT - Income TaxRevision u/s 263 - entitled to deduction @ 30% of the profits instead of 100% under the provisions of section 80IC - Held that:- It is an admitted fact that the business unit of assessee was setup in 2004-05 and business activity was commenced in April, 2006. It is also not in dispute that as per the year of commencement of business, the initial assessment year of the business was 2007-08 for claiming deduction u/s. 80IC. It is also not in dispute initially, the assessee claimed deduction @ 100% on the premise that new unit was set up in the State of Himanchal Pradesh and now the assessee wanted to continue this rate of 100% for next five years under the said provisions on the premise that they have made substantial expansion, which is not permissible as per scheme of the section 80IC regarding commencement of initial assessment year. The aforesaid issue has been finally decided in recent decision of CIT vs. Classic Binding Industries [2018 (8) TMI 1209 - SUPREME COURT OF INDIA] as unequivocally supports the findings reached by the ld. Pr. CIT that the assessee was not entitled to get 100% deduction treating the year under considering as initial assessment year on the premise of substantial expansion of business. A perusal of the impugned assessment order nowhere reveals that the Assessing Officer, not to speak of reliance on any decision of jurisdictional High Court, has not even addressed or examined or verified the claim of the assessee in terms of provisions of section 80IC of the Act. The ld. Pr. CIT, on correct appreciation of section 80IC, which is supported by various decisions relied in the impugned order as well by the decision of Hon’ble Supreme Court in the case of CIT vs. Classic Binding Industries (supra), being the law of land, was therefore justified to in revising the assessment being erroneous in so far as prejudicial to the interest of Revenue. - Decided against assessee.
|