TaxTMI 
TaxTMI 
2019 (4) TMI 52
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....ome Tax Act, 1961(hereinafter referred to as "Act") @ 100% of the eligible profits, on substantial expansion undertaken by the assessee, when earlier deduction @ 100% of the profits had been claimed for the stipulated period of five years. That the ITAT had dismissed the appeal following the decision of the Hon'ble Apex Court in the case of CIT vs Classic Binding Industries Civil Appeal No.208 of 2018 & Others dated 20th August 2018. 3. The applicant submitted that the issue involved in the appeal had been decided in favour of the assessee by a subsequent judgement of the Hon'ble Apex court in the case of Pr.CIT, Shimla vs. M/s Aarham Softronics in Civil Appeal No.1784 of 2019, dated 20.02.2019, reversing its earlier judgement in the case ....
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....section 80IC of the Act. The finding of the Hon'ble Apex Court at para 22 of its order is as under: "22. It would be pertinent to point out that in Para 20 of the judgment in Classic Binding Industries, this Court observed that if deduction @ 100% for the entire period of 10 years, it would be doing violence to the language of sub-section (6) of Section 80-IC. However, this observation came without noticing the definition of 'initial assessment year' contained in the same very provision." 6. The Hon'ble Apex Court thereafter concluded that this decision in the case of M/s Classic Binding Industries (supra) did not lay down the correct law and that a newly set up undertaking or enterprise in the State of Himachal Pradesh would be ....
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....sible deduction would be 25% (or 30% where the assessee is a company) of the profits and gains. (c) However, in case substantial expansion is carried out as defined in clause (ix) of sub-section (8) of Section 80-IC by such an undertaking or enterprise, within the aforesaid period of 10 years, the said previous year in which the substantial expansion is undertaken would become 'initial assessment year', and from that assessment year the assessee shall been entitled to 100% deductions of the profits and gains. (d) Such deduction, however, would be for a total period of 10 years, as provided in sub-section (6). For example, if the expansion is carried out immediately, on the completion of first five years, the assessee would be entitled t....