TMI Blog2022 (6) TMI 645X X X X Extracts X X X X X X X X Extracts X X X X ..... f a kind mentioned in section 80-IC(2) and started availing exemption of 100 per cent tax under section 80-IC(3) (which is admissible for five years) could start claiming exemption at same rate of 100 per cent beyond period of five years if it carried out substantial expansion in its manufacturing unit in terms of section 80-IC(8)(ix) within period of ten years.- Decided against revenue. - ITA.No.6348/Del./2018 - - - Dated:- 13-6-2022 - Shri Anil Chaturvedi, Accountant Member And Shri Challa Nagendra Prasad, Judicial Member For the Revenue : Shri N.C. Upadhyaya, Sr.DR For the Assessee : None ORDER PER ANIL CHATURVEDI, A.M. This appeal by Revenue has been directed against the Order of the Ld. CIT(A), ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ter availing deduction for a period of 5 years @ 100% of such profits and gains from the units , the assesses would be entitled to deduction for remaining 5 Assessment Year @ 25% (or 10% where the assessee is a company), as the case may be, and not @ 100%. 2. Ld. CIT (A) has erred in law, facts and circumstances that the assessee made the claim of deduction (a) 100% of profits in the tenth year while the position of law was clear that for balance five years the deduction was admissible @ 10% of the profits derived from eligible business. 3. Ld. CIT (A) has erred In law, facts and circumstances that the assessee is not given an option to re-fix its Initial assessment year except only in one case as provided in section 801A. Ha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... .T. Act, 1961, assessee was eligible for deduction at 30% of the profits derived from eligible business and, therefore, the assessee was asked to justify its claim of deduction @ 100% under section 80IC(2)(b)(ii) of the I.T. Act, 1961. In response to the query of the A.O, assessee made detailed submissions and inter alia submitted that it had completed substantial expansion in A.Y. 2011-12 and had started production of articles specified in 14th Schedule and was eligible for exemption again at 100%. The submissions of the assessee was not found acceptable to A.O. A.O. was of the view that deduction under section 80IC can be claimed only for 10 years at 100% of profits from eligible business and for the subsequent years, deduction at 30% is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... of deduction amounting to Rs.25,75,92,232/- was added to the income of the assessee. 6.1. Aggrieved by the Order of the A.O, assessee carried the matter in appeal before the Ld. CIT(A). The Ld. CIT(A) while deciding the issue in assessee s favour noted that an identical issue had also arisen in assessee s own case in A.Y. 2011-12 and his predecessor had allowed the claim of 100% deduction vide order dated 22.03.2016. He also noted that the Hon ble Himachal High Court in the case of Stovekraft India vs., CIT in ITA.No.20 of 2017 dated 28.11.2017, on identical facts had directed the A.O. to allow the claim of deduction under section 80IC of the I.T. Act, 1961. He, therefore, following the order of his predecessor and the decision of Hon ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ee having set up a new industry of a kind mentioned in section 80-IC(2) and started availing exemption of 100 per cent tax under section 80-IC(3) (which is admissible for five years) could start claiming exemption at same rate of 100 per cent beyond period of five years if it carried out substantial expansion in its manufacturing unit in terms of section 80-IC(8)(ix) within period of ten years. 9.1. Before us no contrary binding decision in support of the Revenue contention has been pointed out by the Ld. D.R. We, therefore, find no reason to interfere with the order of the Ld. CIT(A) and thus, the grounds raised by the Revenue are dismissed. 10. In the result, appeal of the Revenue is dismissed. Order pronounced in the ope ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
