TMI Blog2018 (9) TMI 1165X X X X Extracts X X X X X X X X Extracts X X X X ..... isputed, (a) the units having carried out substantial expansion within the definition of the Section, (b) their entitlement and extent of deduction would be dependent upon interpretation of the relevant provisions. Eligibility for deduction u/s 80IC in respect of interest income - Held that:- We restore the issue relating ground No.2 to the limited extent that if the interest expenditure incurred by the assessee has nexus with the interest income earned by the assessee, the assessee will be eligible for netting off/setting off of the same against the interest income. The matter is, therefore, restored to the file of the Assessing Officer to decide this issue afresh on this limited point. - Appeal of the assessee is treated as allowed for ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d the addition so made by the Assessing officer by following the decision of the Tribunal in the case of M/s Hycron Electronics v ITO in ITA No. 798/Chd/2012 and other related cases. 3. The Ld. AR has stated that the issue relating to substantial expansion raised in this appeal is now well settled, which has already been adjudicated by the Hon ble Himachal Pradesh High Court vide their order dt. 28 November 2017 in the group of cases with the lead case titled as M/s Stovekraft India vs. Commissioner of Income Tax, ITA No.20 of 2015, and it has been pointed out that the Hon ble High Court has decided the issue in favour of the assessee, holding that there is no bar in the said section denying the benefit of hundred percent deduction to ne ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... subject to a cap of ten years. [Section 80-IC(6)]. (g) Units claiming deduction under Section 80-IC shall not be entitled to deduction under any other Section, contained in Chapter VI-A or Section 10A or 10B of the Act [Section 80- IB(5)]. 4. Ld. DR has fairly admitted that the issue is squarely covered by the above decision of the Hon'ble jurisdictional High Court. He, however, has submitted that the issue be restored to the file of the Assessing officer for verification as to whether the assessee has actually carried out the substantial expansion to be entitled to claim deduction u/s 80IC of the Act. 5. We do not agree to the above contention raised by the Revenue at this stage. A perusal of the order of the Assessing ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... t off of the interest expenditure incurred for earning of interest income. 8. However, the learned representatives of both the parties have submitted that this issue has not been adjudicated upon either by the Assessing Officer or by the Ld. CIT (Appeals). We, therefore, restore the issue relating ground No.2 to the limited extent that if the interest expenditure incurred by the assessee has nexus with the interest income earned by the assessee, the assessee will be eligible for netting off/setting off of the same against the interest income. The matter is, therefore, restored to the file of the Assessing Officer to decide this issue afresh on this limited point. 9. In the result, the appeal of the assessee is treated as allowed for s ..... X X X X Extracts X X X X X X X X Extracts X X X X
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