Section 80IC deduction is time-bound: earlier incentive periods count toward the ten-year ceiling, so repeated fresh claims were rejected.

Section 80IC was interpreted as a time-bound deduction regime with a statutory ceiling of ten assessment years. The Tribunal held that the non obstante clause in sub-section (6) applies generally to undertakings covered by section 80IC, and that the aggregate deduction period, including any deduction earlier claimed under section 80IB or section 10C, cannot exceed that limit. It rejected an interpretation that would allow repeated fresh periods of full deduction after successive substantial expansions, as that would render section 80IC(6) and other parts of the provision redundant. The assessee was therefore treated as having exhausted the permissible deduction period, and the disallowance was upheld.

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Issues: Whether deduction under section 80IC of the Income-tax Act, 1961 was allowable after the assessee had already availed deduction under section 80IB and whether section 80IC(6) restricted the total deduction period to ten assessment years.

Analysis: The Tribunal held that section 80IC(6) begins with a non obstante clause and therefore applies generally to undertakings covered by section 80IC. Reading section 80IC as a whole, it found that the provision grants a time-bound deduction for eligible undertakings and that the aggregate deduction period, including deduction earlier claimed under section 80IB or section 10C, cannot exceed ten assessment years. The Tribunal further held that an interpretation allowing repeated fresh periods of 100% deduction on successive substantial expansions would make section 80IC(6) and other parts of the section redundant, which is impermissible. Following its earlier decision on the same issue, it concluded that the assessee had already exhausted the permissible deduction period.

Conclusion: The deduction claim under section 80IC was not allowable beyond the statutory ceiling of ten assessment years and the disallowance was upheld.

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