TaxTMI 
TaxTMI 
2019 (3) TMI 482
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....estricting the deduction u/s 80IC as the assessee had substantially expanded its new business already claiming deduction u/s 80IC since A.Y. 2006-07 and refixed its initial A.Y. for claiming deduction at 100% instead of 25% which is not permissible as per law and the legislative intent. The CIT(A) relied on ITAT decision of M/s Tirupati LPG Industries Ltd V/s DCIT ( ITA No. 991/DEL/2013) by citing that the deduction once given, cannot be disturbed. CIT(A) had not considered the latest decision of M/s Hycron Electronics V/s ITO(ITA No. 798/CHD/2012) pronounced by jurisdictional ITAT dated 27 May 2015 wherein the case of M/s Tirupati LPG Industries Ltd V/s DCIT ( ITA No. 991/DEL/2013) dated 29 January 2014 had already been considered." 2. ....
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.... ( Rs. 1,54,92,945 @ 25% = Rs. 38,73,236/-)and accordingly addition of Rs. 1,16,19,709/- (= Rs. 1,54,92,945- Rs. 38,73,236/-) is being made to the total income." 5. The CIT(A) considering the issue relying upon the decision of the ITAT in the case of Tripuati LPG Industries Ltd. Vs. DCIT granted relief to the assessee holding as under:- "I have considered the issue and also the submissions made by the appellant. The AO has restricted the deduction by relying on the Circular no 7 of 2003 (Clause 49.1). As per sub-section (2) of section 80 IC, deduction under this section is available to any undertaking or enterprises in the following two categories:- i. The undertaking or enterprises has begun or begins to manuf....
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.... There is no dispute regarding the fact thsat the assessee is claiming deduction U/S 80 IC since A/Y 2006-07 and substantially expanded its business during A/Y 2011-12. The case is squarely covered by the decision of the Hon'ble Delhi ITAT in Tirupati LPG Industries Ltd. vs DCIT in ITA No.991/D/2013 dated 29.01.2014, which is also the Jurisdictional Bench over the case of the appellant as per Jurisdiction. In view of the facts pointed out above, the addition of Rs. 1,16,19,709/- by restricting the deduction from 100% of profits to 25% of profits cannot be sustained and is deleted. 4. In the result, the appeal is allowed." 6. It is seen that the Apex Court in very categoric terms has attend the positio....
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.... 24. The aforesaid discussion leads us to the following conclusions: (a) Judgment dated 20th August, 2018 in Classic Binding Industries case omitted to take note of the definition 'initial assessment year' contained in Section 80-IC itself and instead based its conclusion on the definition contained in Section 80-IB, which does not apply in these cases. The definitions of 'initial assessment year' in the two sections, viz. Sections 80-IB and 80-IC are materially different. The definition of 'initial assessment year' under Section 80-IC has made all the difference. Therefore, we are of the opinion that the aforesaid judgment does not lay down the correct law. (b) An undertaking or an enterprise which had set....