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2021 (7) TMI 183 - AT - Income TaxDeduction u/s 80IC - ‘initial assessment year’ - whether the initial Assessment Year can be re-fixed in case of substantial expansion? - permissible deduction of 30% because the law was very clear on the issue that for companies the deduction was allowable only @ 30% after expiry of the initial five assessment years - as per DR that the assessee does not have an option to re-fix the initial assessment year, and therefore, the claim of deduction @ 100% for the 6th and 7th Assessment Years from the initial assessment year was not valid in the eyes of law - HELD THAT:- Assessee can re-fix the initial Assessment Year in the case of substantial expansion from year in which the substantial expansion has taken place for the purpose of claiming deduction at full rate subject to over all limit of 10 years. Although, the Department has vehemently opposed the orders of the CIT(A) granting deduction @ 100%, we find no error either in law or on facts having been committed by Ld. CIT(A) in the two captioned appeals as the Ld. CIT(A) has only followed the interpretation as laid down by the Coordinate Bench of this Tribunal. Sr. DR also could not bring to our notice any order contrary to the order of the Coordinate Bench of this Tribunal in the case of Tirupati LPG Industries [2014 (1) TMI 1689 - ITAT DELHI] The issue now stands squarely covered by the judgment of in the case of Pr. Commissioner of Income Tax vs. Aarham Softronics [2019 (2) TMI 1285 - SUPREME COURT] as laid down that in case substantial expansion is carried out as defined in clause (ix) of Sub-section-8 of Section 80IC by such an undertaking or enterprise, within the aforesaid period of 10 years, the said previous year in which the substantial expansion is undertaken would become ‘initial assessment year’ and from that assessment year, the assessee shall be entitled to 100% deduction of profits and gains .Deduction would be for a total period of 10 years. - Decided against revenue.
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