2020 (5) TMI 43 - ITAT CHANDIGARH - Income Tax

Head Note / Extract:
Deduction u/s 80IC - @ 25 % OR 100% - Claim during the 7th year on the basis of substantial expansion - HELD THAT:- As decided in M/S. AARHAM SOFTRONICS [2019 (2) TMI 1285 - SUPREME COURT] carrying out substantial expansion by itself is treated as 'initial assessment year'. It would mean that even when an old unit completes substantial expansion, such a unit also becomes entitled to avail the benefit of Section 80-IC. If that is the purpose of the legislature, we see no reason as to why 100% deduction of the profits and gains be not allowed to even those units who had availed this deduction on setting up of a new unit and have now invested huge amount with substantial expansion of those units - direct the A.O. to allow the claim of the Assessee for deduction under section 80IC - Decided in favour of assessee. Unexplained cash deposit - HELD THAT:- As noticed that the wife of the assessee had shown rental income for the year under consideration which has been accepted by the Department - wife of the assessee could have saved some amount out of the aforesaid rental income, at the same time, the amount of ₹ 2,00,000/- was deposited on 08/05/2014 , so it cannot be presumed that that the total rental income for the whole year was received by the wife of the assessee before that date, particularly when no evidence was furnished to substantiate the same. Therefore, we are of the view that the said deposit of ₹ 2,00,000/- was unexplained. As regards to the another deposit, some amount had been withdrawn from the bank account by the wife of the assessee and remaining account is from the savings from rental income of earlier years - the submission appears to be plausible, however part of the deposit confirmed - Decided partly in favour of assessee.