TMI Blog2018 (3) TMI 1868X X X X Extracts X X X X X X X X Extracts X X X X ..... pleased to quash the order of the Tribunal in confirming the order of CIT(A) and AO in denying allowance @100% u/s 80IC of the Act and held that Sub clause (v) of sub section 8 of section 80IC of the Act contemplates more than one Initial assessment year and for a unit which completes substantial expansion, initial assessment year means A.Y. relevant to the previous year in which it completes substantial expansion. In the present case, claim of the assessee was that substantial expansion was taken place during the previous year i.e. 2012-2013 and claimed deduction @ 100% for A.Y.2013-14. Assessee is entitled to claim deduction @100% u/s 80IC of the Act. We therefore find no infirmity in the order of CIT(A). Accordingly grounds raised ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ndustries Ltd. In ITA No..2786/Del/103 allowed the deduction @ 100% u/s 80IC of the Act and the relevant portion of which is reproduced below :- Conclusion: I have considered the observations of the Assessing Officer and the submissions made by the appellant. I have also gone through the provisions contained in section 80le. I find that initial assessment year has been defined in sub section 80IC(8)(v) as under:- Initial assessment year means the assessment year relevant to the previous year in which the undertaking or the enterprise begins to manufacture or produce articles or things, or commences operation or completes substantial expansion; As per the aforesaid definition initial assessment year can be year in which the undertaking ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... th the parties we find that as the issue of claiming deduction @100% u/s 80IC of the Act was challenged by a batch of assessees before the Hon ble High Court of Himachal Pradesh which held that the assessee is entitled to benefit @ 100% u/s 80IC having claimed such deduction for first five years as there was no bar in the statute to claim deduction after undertaking substantial expansion within the prescribed period. The relevant portion of which is reproduced herein below :- 55. Thus, in view of the above discussion, these appeals are allowed and orders passed by the Assessment Officer as well as the Appellate Authority and the Tribunal, in the case of each one of the assessees, are quashed and set aside, holding as under: (a) Such ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the year of completion of the substantial expansion will be the initial year, thereby held that the assessee is entitled to avail deduction u/s 80IC of the Act. In the present case the AO denied the deduction u/s 80IC of the Act to the assesee on the ground that the assessee availed such deduction from A.Y.2008-09 being initial assessment year for availing deduction u/s 80IC of the Act upto 12013 for five years , and he was of the opinion that the assessee is not entitled to claim deduction @100% u/s 80IC for the A.Y. under consideration i.e. 2013-14. The AO found that from the tax audit report that the assessee started conducting its business from 26.05.2007, i.e. 2008-09 and the claim of deduction @100% is available for five years i.e. A ..... X X X X Extracts X X X X X X X X Extracts X X X X
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