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TMI Blog2019 (7) TMI 234X X X X Extracts X X X X X X X X Extracts X X X X ..... ment year the assessee shall been entitled to 100% deductions of the profits and gains. 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 this year becomes 'initial assessment year' once again. However, this 100% deduction would be for remaini ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d Counsel appearing for the respondent-assessee. In Principal Commissioner of Income Tax Shimla V. M/s Aarham Softronics, Civil Appeal No.(s). 1784 of 2019 , decided on 20.02.2019, the Supreme Court took up for consideration a question of law which they formulated in para 2 of the judgment, as follows:- Whether an assessee who sets up a new industry of a kind mentioned in sub-section (2) of Section 80-IC of the Act and starts availing exemption of 100 per cent tax under sub-section (3) of Section 80-IC (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 ground that the assessee has now carried out substantial expansion in ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d gains. (c) However, in case substantial expansion is carried out as defined in clause (ix) of sub-section (8) of Section 80-IC by such an undertaking or enterprise, within the aforesaid period of 10 years, the said previous year in which the substantial expansion is undertaken would become 'initial assessment year', and from that assessment year the assessee shall been 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 th ..... X X X X Extracts X X X X X X X X Extracts X X X X
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