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TMI Blog2021 (7) TMI 183X X X X Extracts X X X X X X X X Extracts X X X X ..... ordinate Bench of this Tribunal. Sr. DR also could not bring to our notice any order contrary to the order of the Coordinate Bench of this Tribunal in the case of Tirupati LPG Industries [ 2014 (1) TMI 1689 - ITAT DELHI ] The issue now stands squarely covered by the judgment of in the case of Pr. Commissioner of Income Tax vs. Aarham Softronics [ 2019 (2) TMI 1285 - SUPREME COURT ] as laid down that in case substantial expansion is carried out as defined in clause (ix) of Sub-section-8 of Section 80IC 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 be entitled to 100% deduction of profits and gains .Deduction would be for a total period of 10 years. - Decided against revenue. - ITA No.3427/Del/2016, ITA No.3428/Del/2016 - - - Dated:- 31-5-2021 - Shri Sudhanshu Srivastava, Judicial Member And Shri Prashant Maharishi, Accountant Member For the Appellant : Sh. N.C.Uppadhay, Sr. DR For the Respondent : None ORDER PER SUDHANSHU SRIVASTAVA, JM: These two appeals have ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... he deduction u/s 80IC to ₹ 6,86,65,666/-. 4.0 The assessee preferred appeals before the Ld. First Appellate Authority which were allowed by the Ld. CIT(A) and now the Department has approached this Tribunal challenging the said orders of the Ld. CIT(A) and has raised the following grounds of appeal: Grounds of appeal in ITA No. 3427/Del/2016 1. Ld. CIT (A) has erred in law, facts and circumstances of the case in allowing appeal of the assessee for the claim of deduction u/s 80IC to 100% as against 30% only by following the order of Hon ble ITAT, Delhi in the case of M/s Tirupati LPG Industries Limited Vs JCIT, Range -2, Dehradun which is not accepted by the department, therefore, it is not binding on the department. 2. Ld. CIT (A) has erred in law, facts and circumstances that the assessee made the claim of deduction @ 100% of profits in the sixth year while the position of law was clear that for balance five years the deduction was admissible @ 30% of the profits derived from eligible business. 3. Ld. CIT (A) has erred in law, facts and circumstances that the assessee is not given an option to re-fix its initial assessment year except only in one cas ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... unit and again claimed deduction @ 100%. It is beyond dispute that the claim @ 100% was not questioned by the Department for non fulfillment of statutory conditions and the only question before us is whether the initial Assessment Year can be re-fixed in case of substantial expansion. A perusal of the impugned orders shows that the Ld. CIT(A) has allowed the assessee s claim by following the order of ITAT, Delhi Bench in the case of Tirupati LPG Industries Limited vs. DCIT Range-2, Dehradun in ITA No.991/Del/2013 vide order dated 29.01.2014. In this case, the Co-ordinate Bench of ITAT had held that in case of substantial expansion, the deduction will be allowable @ 100% subject to a maximum of 10 years. Thus, it has been held that the assessee can re-fix the initial Assessment Year in the case of substantial expansion from year in which the substantial expansion has taken place for the purpose of claiming deduction at full rate subject to over all limit of 10 years. Although, the Department has vehemently opposed the orders of the Ld. CIT(A) granting deduction @ 100%, we find no error either in law or on facts having been committed by Ld. CIT(A) in the two captioned appeals as ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... % deduction of profits and gains for a period of 5 years commencing from such initial Assessment Year, and thereafter the % of deduction from profits come down. The term initial year has been defined, as a year in which substantial expansion is completed. There is nothing to suggest that there cannot be a second initial year if a second substantial expansion is completed. Even if an existing unit which is claiming 80-IC, undertakes first substantial expansion then also the year of completion of the substantial expansion will be the initial year . If the literal meaning of the term initial assessment year is to be taken, then there is no requirement of defining this term in the section. We have to go by the language of the section. 10.6. The CIT(A) denies the deduction on the ground that it would amount to evergreening of an incentive provision. Sub section (6) of S.80-IC reads as follows. ITA N0.2786/Del/2013 9 6) Notwithstanding anything contained in this Act, no deduction shall be allowed to any undertaking or enterprise under this section, where the total period of deduction inclusive of the period of deduction under this section, or under the second proviso to su ..... X X X X Extracts X X X X X X X X Extracts X X X X
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