80 IC-substantial expansion

[shivani taneja]

IF a Company was established after 2003 in baddi and has alresdy claimed dudction of 100% of Profits for last 5 years....can it again cliam deduction of 100% for another 5 years if it does substantial expanstion

AI Summary

Can companies in Baddi claim 100% profit deduction under Section 80IC after substantial expansion? Debate on limits and MAT. A discussion on a forum addresses whether a company established after 2003 in Baddi can claim a 100% profit deduction for another five years under Section 80IC if it undergoes substantial expansion. One participant affirms this possibility, while another argues that substantial expansion provisions do not apply to companies existing before the section's implementation to prevent repeated deductions. Another contributor notes a 10-year cap on deductions but finds no restriction on claiming 100% within that period. A reference to a Kolkata ITAT order is mentioned, and another participant confirms the possibility but notes the requirement to pay Minimum Alternate Tax (MAT).