2019 (5) TMI 36

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..... 1356/CHD/2017, for the assessment year 2014-15, claiming the following substantial questions of law:- a) Whether on the facts and in the circumstances of the case the Ld. ITAT is right in law in holding that the Assessee is eligible for deduction under Section 80IC of the Income Tax Act, 1961 @ 100% against the eligible profits for the Assessment Year 2014-15 being 9th Year of production on account of undertaking substantial expansion during the Financial Year 2010-11 relevant to the Assessment Year 2011-12 by treading the Assessment Year 2011-12 as initial Assessment Year? b) Whether on the facts and in the circumstances of the case, the Ld. ITAT is right in law in allowing the Appeal of the Assessee by following the or....

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....on account of substantial expansion. The said deduction was based on substantial expansion carried out by the assessee during the financial year 2010-11 relevant to the assessment year 2011-12. The Assessing Officer vide order dated 5.5.2016 (Annexure A-1) framed the assessment under Section 143(3) of the Act disallowing the claim of the assessee under Section 80IC of the Act by restricting the same to 25% against the claim made at the rate of 100%. Feeling aggrieved by the order, Annexure A-1, the assessee filed an appeal before the Commissioner of Income Tax (Appeals) [for brevity "the CIT(A)"]. The CIT(A) vide order dated 4.7.2017 (Annexure A-2) dismissed the appeal of the assessee and upheld the disallowance made by the Assessing Office....

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....etween 7th January, 2003 and 1st April, 2012 in State of Himachal Pradesh of the nature mentioned in clause (ii) of sub-section (2) of Section 80-IC, would be entitled to deduction at the rate of 100% of the profits and gains for five assessment years commencing with the 'initial assessment year'. For the next five years, the admissible 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', a....