Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2021 (8) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2021 (8) TMI 4 - AT - Income TaxDeduction u/s 80IC - Assessee undertaken substantial expansion of the industrial unit during the year under consideration - this was the 6th year of claiming deduction u/s 80IC - AO was of the view that the deduction u/s 80IC was allowable @ 100% only for the initial five assessment years and not for undertaking substantial expansion and proceeded to restrict the assessee’s claim of deduction to 25% of the profit and gains from the eligible business - whether the initial Assessment Year can be re-fixed in the case of substantial expansion? - HELD THAT:- A perusal of the impugned order shows that the Ld. CIT(A) has allowed the assessee’s claim by following the order of ITAT Delhi Bench in the case of Tirupati LPG Industries Limited [2016 (2) TMI 1279 - ITAT DELHI] as held that in case of substantial expansion, the deduction will be allowable @ 100% subject to a maximum of 10 years. Thus, it has been held that the assessee can re-fix the initial Assessment Year in the case of substantial expansion from the 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 order of the Ld. CIT(A) granting deduction @ 100%, we find no error either in law or facts having been committed by Ld. CIT(A) as the Ld. CIT(A) has only followed the interpretation as laid down by the Co-ordinate Bench of this Tribunal. Further, the issue now stands squarely covered by the judgment of M/S. AARHAM SOFTRONICS [2019 (2) TMI 1285 - SUPREME COURT] wherein 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. It was also laid down by the Hon’ble Apex Court that deduction would be for a total period of 10 years. Appeal filed by the Department stands dismissed.
|