Deduction u/s 80 I C

[Dharmender Batra]

The assessee has taken the claim 100% in first five years in Himachal pradesh. Now he has done substantial expansion. Can he claim 100% deduction for next 5 years or it will be restricted to 25% of profit only

AI Summary

Deduction under section 80IC: substantial expansion does not restart the initial full exemption period; remaining term follows reduced rates.
The exemption tenure for eligible industrial units is fixed and cannot be re initiated by substantial expansion; units either receive full deduction for the entire prescribed tenure or receive full deduction for the initial part and a reduced deduction for the remaining part, and post expansion revenue does not convert reduced rate entitlement into renewed full rate entitlement.