9911796707
TMI Blog2018 (9) TMI 1165X X X X Extracts X X X X X X X X Extracts X X X X ..... 00% of profit derived from manufacturing activities of unit despite of fact that the assessee has undertaken substantial expansion during the financial year 2009-10. Further the Ld. Assessing officer has wrongly disallowed deduction amounting to Rs. 1745580/- u/s 80IC of the Income Tax Act. 2. That the Id Commissioner of Income Tax (appeal) has erred by upholding the addition of Rs. 17758/- on account of interest. 2. The brief facts relating to the issue are that the assessee claimed deduction u/s 80IC of the Act @100% on account of substantial expansion of the Unit. The Assessing officer, however, denied the claim observing that assessee once had availed the deduction u/s 80IC at the time of establishment of unit and thus was not entitl ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... benefit of Section 80-IC of the Act, for the period for which they were not entitled to the benefit of deduction under Section 80-IB. (b) Such of those units which have commenced production after 7.1.2003 and carried out substantial expansion prior to 1.4.2012, would also be entitled to benefit of deduction at different rates of percentage stipulated under Section 80-IC. (c) Substantial expansion cannot be confined to one expansion. As long as requirement of Section 80IC(8)(ix) is met, there can be number of multiple substantial expansions. (d) Correspondingly, there can be more than one initial Assessment Years. (e) Within the window period of 7.1.2013 upto 1.4.2012, an undertaking or an enterprise can be entitled to deduction @ 10 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ation of the relevant provisions." We, therefore, do not find any justification at this stage to give the Assessing officer a second innings to re-examine undisputed facts. 6. In view of the above discussion, the impugned order of the CIT(A) relating to ground No.1 is set aside and the Assessing officer is directed to grant to the assessee deduction at the rate of hundred percent of its eligible profits, as per the ruling of the jurisdictional High Court in this regard in the case of 'M/s Stovekraft India vs. Commissioner of Income Tax' (supra). 7. So far as ground No.2 is concerned, the Ld. Counsel for assessee fairly admitted that the assessee is not eligible for deduction u/s 80IC of the Act in respect of interest income, however, he ..... X X X X Extracts X X X X X X X X Extracts X X X X
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