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2020 (5) TMI 255 - AT - Income TaxDeduction u/s 80IB(3) - Whether Appellant as engaged in business of manufacturing of mills machinery parts and chemicals has satisfied all the conditions relating to allowably of deduction? - assessee has claimed deduction being 25% of the profit u/s 80IB - HELD THAT:- Undisputed fact that the assessee has been claiming deduction under section 80IB of the Act for the last several years and the same was accepted by the Revenue in the assessment framed under section 143(3). Activity of the assessee has already been accepted by the Revenue as eligible for the deduction under section 80IB of the Act. Since there is no change in the facts and circumstances for the year under consideration viz a viz the earlier assessment years, we are of the view that the principles of consistency need to be applied. See M/S. SONATA SOFTWARE LTD VERSUS ADDL. COMMISSIONER OF INCOME TAX [2015 (3) TMI 353 - ITAT MUMBAI] In the similar facts and circumstances the jurisdictional High Court in the case of Saurashtra Cement & Chemical Industries Ltd. [1979 (1) TMI 249 - GUJARAT HIGH COURT] has held that “The tax holiday under section 80J cannot be discontinued in the subsequent year without disturbing the relief granted in the earlier year. “ We hold that the claim of the assessee for the deduction u/s 80IB cannot be denied for the year under consideration as the claim has been accepted by the revenue in the earlier assessment years which was not withdrawn. - Decided in favour of assessee.
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