2018 (2) TMI 163

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....ls), Shimla is defective both in law and facts of the case. 2. That the Learned Commissioner of Income Tax (Appeals), Chandigarh is unjustified in upholding the order of the Ld. Assessing Officer regarding restricting the claim of deduction u/s 801C to 25% as against 100% claimed by the appellant being the initial assessment year on the basis of substantial expansion done during the FY 2010-11 after fulfilling the requisite conditions u/s 80IC of I.T. Act, 1961. This disallowance is uncalled for and deserves to be deleted. 3. That the Learned Commissioner of Income Tax (Appeals), Chandigarh is unjustified in upholding the order of the Ld. Assessing Officer concluding that the benefit of substantial expansion is available o....

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.... sections should be construed liberally and where there are two possible views the one in favor of the assessee should be taken as held by the Hon'ble Apex Court in the case of M/s Gwalior Rayon Silk Manf. Co. Pvt. Ltd. (196 ITR 149) and M/s Bajaj Tempo (196 ITR 188). 3. During the course of hearing before us, it was brought to our notice that the order of the ITAT in the case of Hycron Electronics (supra) had been decided in appeal by the Hon'ble Himachal Pradesh High Court vide their order dt. 28 November 2017 in the group of cases with the lead case titled as M/s Stovekraft India vs. Commissioner of Income Tax, ITA No.20 of 2015, and it was pointed out that the Hon'ble High Court had decided the issue in favour of the assessee, ho....

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....rise can be entitled to deduction @ 100% for a period of more than five years. (f) All this, of course, is subject to a cap of ten years. [Section 80-IC(6)]. (g) Units claiming deduction under Section 80-IC shall not be entitled to deduction under any other Section, contained in Chapter VI-A or Section 10A or 10B of the Act [Section 80- IB(5)]." 4. No one appeared on behalf of the assessee. However, Ld. DR fairly admitted that the issue is squarely covered by the above decision of the Hon'ble jurisdictional High Court. She, however, has submitted that the issue be restored to the file of the Assessing officer for verification as to whether the assessee has actually carried out the substantial expansion to be entitle....