9911796707
TMI Blog2019 (5) TMI 309X X X X Extracts X X X X X X X X Extracts X X X X ..... the Tribunal") in ITA No. 1617/Chd/2017, for the assessment year 2014-15, claiming the following substantial questions of law:- (i) Whether an assessee who sets up a new industry of a kind mentioned in sub-section (2) of Section 80IC of the Income Tax Act, 1961 and starts availing exemption of 100 per cent tax under subsection (3) of Section 80IC of the Act (which is admissible for five years) can start claiming the exemption at the same rate of 100% beyond the period of five years on the grounds that the assessee has now carried out substantial expansion in its manufacture unit? (ii) Whether there can be more than one 'initial assessment year' for availing the deduction u/s 80IC of the Income Tax Act? (iii) Whether the ord ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 10.2017 (Annexure A-II) dismissed the appeal of the assessee and upheld the disallowance made by the Assessing Officer. Still dissatisfied, the assessee filed an appeal before the Tribunal. The Tribunal vide order dated 2.7.2018 (Annexure A-III) allowed the appeal of the assessee in view of the order dated 28.11.2017 passed by the Himachal Pradesh High Court in M/s. Stoverkraft India v. Commissioner of Income Tax (2018) 400 ITR 225 (HP). Hence, the present appeal. 3. We have heard learned counsel for the parties. 4. It was not disputed by the learned counsel for the parties that the issue involved herein is covered by the decision of the Apex Court in Commissioner of Income Tax v. Aarham Softronics, Civil Appeal No. 1784 of 2019 decided ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ar in which the substantial expansion is undertaken would become 'initial assessment year', and from that assessment year the assessee shall be entitled to 100% deductions of the profits and gains. (d) Such deduction, however, would be for a total period of 10 years, as provided in sub-section (6). For example, if the expansion is carried out immediately, on the completion of first five years, the assessee would be entitled to 100% deduction again for the next five years. On the other hand, if substantial expansion is undertaken, say, in 8th year by an assessee such an assessee would be entitled to 100% deduction for the first five years, deduction @ 25% of the profits and gains for the next two years and @ 100% again from 8th year as th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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