TaxTMI 
TaxTMI 
80 IC-substantial expansion
30 Dec 2010 
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Substantial expansion entitlement can permit renewed full industrial deduction, subject to cumulative duration limits and tax consequences.
Whether a company that previously claimed a period of full industrial deduction may claim another period by undertaking substantial expansion is disputed; commentators say expansion can permit a further full deduction, though others question applying expansion relief to pre existing beneficiaries. The discussion notes an effective cumulative duration limit on deductions, a lack of explicit statutory prohibition on repeat claims by previously benefited firms, a tribunal order cited for relevance, and potential Minimum Alternate Tax consequences when claiming successive deduction periods. (AI Summary)
Whether a company that previously claimed a period of full industrial deduction may claim another period by undertaking substantial expansion is disputed; commentators say expansion can permit a further full deduction, though others question applying expansion relief to pre existing beneficiaries. The discussion notes an effective cumulative duration limit on deductions, a lack of explicit statutory prohibition on repeat claims by previously benefited firms, a tribunal order cited for relevance, and potential Minimum Alternate Tax consequences when claiming successive deduction periods. (AI Summary)
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