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2022 (9) TMI 771 - AT - Income TaxRevision u/s 263 by CIT - Deduction u/s 80-IC - initial year for claiming 100% deduction - substantial expansion undertaken by the assessee within 10 years period the year of substantial expansion - HELD THAT:- On perusal of the assessment order passed by the Assessing Officer we notice that the assessee firm is engaged in the business of manufacturing battery components and the assessee had set up its unit on 2.06.2006 relevant to the assessment year 2007-08. The assessee subsequently had undertaken substantial expansion during the financial year 2011-12 and continued to claim deduction at 100% on substantial expansion undertaken by the assessee. The claim of the assessee was denied while passing the order pursuant to the order passed under section 263 of the Act. The ratio of the decision in the case of Pr. CIT Vs. Aarham Softronics [2019 (2) TMI 1285 - SUPREME COURT] applies to the facts of the case as it was held that there can be two initial assessment years and the year in which there was substantial expansion that year is the initial assessment year within the period of 10 years for the purpose of claiming deduction under section 80-IC of the Act. Thus respectfully following the decision of the Hon’ble Supreme Court we hold that the assessee is entitled for deduction under section 80-IC of the Act for the assessment years 2012-13 and 2015-16 which are under consideration. We reverse the order of the ld. CIT (Appeals) and direct the Assessing Officer to allow the claim of the assessee under section 80-IC - Decided in favour of assessee.
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