TaxTMI 
TaxTMI 
2018 (1) TMI 1494
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....e respective assessment years. 2. The common identical issue raised in all the appeals relates to the action of the CIT(A) in disallowing the claim of benefit of substantial expansion for deduction u/s 80IC of the Income-tax Act, 1961 (in short 'the Act'). 3. During the course of hearing before us, it was brought to our notice that the assessee in all the above appeals had been denied deduction u/s 80IC @ 100% of his profits ,claimed beyond the initial eligible period of five years on account of substantial expansion undertaken by it, following the order of the ITAT Chandigarh Bench in the case of Hycron Electronics vs ITO (2016) 69 Taxmann.com 69. It was pointed out that the said order of the ITAT had been decided in appeal b....
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....ng as requirement of Section 80-IC(8)(ix) is met, there can be number of multiple substantial expansions. (d) Correspondingly, there can be more than one initial Assessment Years. (e) Within the window period of 7.1.2013 upto 1.4.2012, an undertaking or an enterprise 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. Ld. DR fairly admitted that the issue is squarely covered by the above decision of the Hon'bl....
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....l position of the case, the Worthy CIT(A) was not justified in partly confirming the action of Ld. AO, whereby addition of Rs. 13,01,872/- and Rs. 38,800 u/s 36(i){iii) was made even when the said disallowance was not warranted. 5. That on the facts, circumstances and legal position of the case, CIT(A) was not justified in confirming the action of Ld. AO, whereby vide para 3 of his order, he erred in making the impugned disallowance of Rs. 1,50,00,000/- in respect of bad debt claimed as an expense by the appellant. ITA No. 1124/Chd/2017 4. That on the facts, circumstances and legal position of the case, the Worthy CIT(A) was not justified in partly confirming the action of Ld. AO, whereby addition of Rs. 5,60,000/....
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....****** New Delhi, Dated 2nd November 2016 Subject: Chapter VI-A Deduction on enhanced profits- Reg. Chapter VI-A of the Income-tax Act, 1961 ("the Act"), provides for deductions in respect of certain incomes. In computing the profits and gains of a business activity, the Assessing Officer may make certain disallowances, such as disallowances pertaining to sections 32, 40(a)(ia), 40A(3), 43B etc., of the Act. At times disallowance out of specific expenditure claimed may also be made. The effect of such disallowances is an increase in the profits. Doubts have been raised as to whether such higher profits would also result in claim for a higher profit-linked deduction under Chapter VI-A. 2, The issue of the claim ....
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.... of 2015, May 03, 2016, Allahabad High Court. The above views have attained finality as these judgments of the High Courts of Bombay, Gujarat and Allahabad have been accepted by the Department. 3. In view of the above, the Board has accepted the settled position that the disallowances made under sections 32, 40{aj{ia), 40A(3), 43B, etc. of the Act and other specific disallowances, related to the business activity against which the Chapter VI-A deduction has been claimed, result in enhancement of the profits of the eligible business, and that deduction under Chapter VI-A is admissible on the profits so enhanced by the disallowance. 4. Accordingly, henceforth, appeals may not be filed on this ground by officers of t....