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2018 (3) TMI 1081 - ITAT CHANDIGARHEntitlement to deduction u/s 80IC on account of substantial expansion of the unit - benefit of deduction on account of investment - eligibility criteria - Held that:- The special provisions of section 80IC of the Act are enacted for promoting investment activity in certain undertaking or enterprises in the special category of states including state of Himachal Pradesh. The Eco-tourism unit including the hotel has been specifically allowed in the list eligible for deduction as per special provisions which otherwise does not involve installation of plant and machinery. If the original investment made for setting up of such unit is eligible for deduction u/s 80IC of the Act, then certainly the further investment in the same infrastructure for the purpose of expansion cannot be denied, merely because the investment does not involve setting up / installment of plant and machinery. The restrictive meaning given by the lower authorities to deny the deduction u/s 80IC of the Act to the assessee on account of substantial expansion cannot be held to be justified. We, accordingly set aside the order of the lower authorities on this issue and hold that the investment in building, furniture, fixture in the case of a hotel will qualify to be treated as investment in plant and machinery for the purpose of section 80IC and, therefore, hold that the assessee will be entitled to deduction u/s 80IC of the Act on account of substantial expansion of the unit - Decided in favour of assessee
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