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TMI Blog2018 (5) TMI 745X X X X Extracts X X X X X X X X Extracts X X X X ..... the same during the course of hearing. We therefore see that there can hardly be any grievance on assessee’s part so far as these two remaining components of the impugned disallowance are concerned. The assessee had not challenged the said two disallowance (s) during the lower appellate proceedings as well. The assessee’s grievance is not maintainable therefore. Denying section 80IE deduction in respect of its unit/garden situated in north-east - Held that:- As referring to assessee's own case [2018 (4) TMI 1511 - ITAT KOLKATA] we adopt judicial consistency in all these three assessment years to remit the instant issue as well back to the Assessing Officer for the purpose of limited verification on quantum of investment in plant and ma ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ounsel fails to dispute the same during the course of hearing. We therefore see that there can hardly be any grievance on assessee s part so far as these two remaining components of the impugned disallowance are concerned. The assessee had not challenged the said two disallowance (s) during the lower appellate proceedings as well. The assessee s grievance is not maintainable therefore. Thus this first substantive ground in the former two assessment years is rejected. 4. The assessee s identical latter substantive ground in former two assessment years and the sole grievance in last assessment year challenges both the lower authorities action denying section 80IE deduction in respect of its unit/garden situated in north-east in the course ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the opinion of Ld. CIT(A), the substantial expansion once undertaken should be completed within the same financial year in order to claim deduction u/s 80IE of the Act. The Ld. CIT(A) also made a passing reference that the additions to plant and machineries were made in 2 to 3 years time by the assessee in the normal way which are on account of replacement of old machineries. The Ld. CIT(A) did not agree to the contention of the assessee that there is no time limit prescribed in Section 80IE of the Act to complete the substantial expansion within the year in which it was undertaken.. Based on this observation, the Ld. CIT(A) upheld the action of the ld. AO in denying deduction u/s 80IE of the Act. Aggrieved, the assessee is in appeal before ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... g with the Initial Assessment Year. The expression Initial Assessment year is defined in section 80IE(7) as under: (7) For the purposes of this section,- (i ) initial assessment year means the assessment year relevant to the previous year in which the undertaking begins to manufacture or produce articles or things, or completes substantial expansion; [Underlining provided by us] From the aforesaid definition of initial assessment year , it could be inferred that the initial assessment year shall be the year in which the substantial expansion is completed by the assessee which would enable it to generate revenues and claim deduction thereon u/s 80IE of the Act. This goes to prove that there is no time limit presc ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... IE(7)(iii) of the Act. If the assessee is found to be so satisfied, then deduction u/s 80IE of the Act should be allowed to the assessee. Accordingly, ground no. 2 raised by the assessee is allowed for statistical purposes. 5. There is no distinction on fact evident in the impugned assessment year on the very issue. We therefore adopt judicial consistency in all these three assessment years to remit the instant issue as well back to the Assessing Officer for the purpose of limited verification on quantum of investment in plant and machinery the concerned. The assessee s latter grievance is accepted for statistical purposes accordingly. 6. We quote our above discussion to partly accept assessee s former two appeals ITA Nos. 1878 and ..... X X X X Extracts X X X X X X X X Extracts X X X X
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