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TMI Blog2021 (3) TMI 619X X X X Extracts X X X X X X X X Extracts X X X X ..... deduction claimed u/s 80IC of the Income tax Act, 1961 [hereinafter referred to as 'The Act' for short] amounting to Rs. 5,30,284/-. 3. Briefly stated, the facts of the case are that the return of income of Rs. 1,77,34,550/- was e-filed on 28.11.2012 and assessment was framed vide order dated 24.03.2014 u/s 143(3) of the Act. Return of income was assessed at Rs. 2,22,70,670/-. 4. The matter was agitated before the ld. CIT(A) and the ld. CIT(A) allowed substantial relief to the assessee. 5. Subsequently, the PCIT assumed jurisdiction u/s 263 of the Act and set aside the assessment order and directed the Assessing Officer to examine the excess claim of deduction u/s 80IC of the Act. 6. Pursuant to the directions of the PCIT, the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the auditor's report i.e. the initial assessment year was 2007-08 from when the assessee is claiming deduction u/s 80IC. According to this, assessment year 2012-13 is the 6th year of claim of deduction and as such as per the provision of 80IC, the assessee should have claimed deduction @30% and not @100% as has been claimed by the assessee for the A.Y. 2012-13. 3. In view of this, a proposal for review of assessment u/s 263 of the IT act, 1961 was made to the Pr. Commissioner of Income Tax-06, New Delhi on 03.03.2016. The Pr. Commissioner of Income Tax-06, New Delhi by exercising his powers u/s 263 vide his order dated 18.03.2016 has set aside the assessment order passed u/s 143(3) by the AO. 4. Disallowance of excess claim u/s 80IC 4 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... same enterprises or undertakings. 13. On this very issue, the Hon'ble Supreme Court in the case of Arham Softronics [supra] has decided the issue in favour of the assessee and against the assessee. The relevant findings of the Hon'ble Supreme Court [supra] read as under: "24. The aforesaid discussion leads us to the following conclusions: {a) Judgment dated 20th August, 2018 in Classic Binding Industries case omitted to take note of the definition 'initial assessment year' contained in Section 80-IC itself and instead based its conclusion on the definition contained in Section 80-IB, which does not apply in these cases. The definitions of 'initial assessment year' in the two sections, viz. Sections 80-IB and 80 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... 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 10U% deduction would be for remaining three years, i.e., 8th, 9th and 10th assessment years. 23. In view of the aforesaid, we affirm the judgment of the High Court on this issue and dismiss all these appeals of the Revenue. Likewise, appeals filed by the assessees are hereby allowed." 14. In light of the aforementioned ratio laid down by the Hon'ble Supreme Court [supra] and on perusal of the financial statements and in particular, the schedule of fixe ..... X X X X Extracts X X X X X X X X Extracts X X X X
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