2019 (9) TMI 142

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....posed off by this consolidated order for the sake of convenience. 2. Identical grounds have been taken in both the appeals. Ground Nos.1 to 4 raised by the assessee in both the appeals relate to the validity of reopening of the assessment u/s 147 read with section 148 of the Income Tax Act, 1961 (in short 'the Act'). 3. At the outset, the Ld.Counsel for the asssessee has submitted that as per the instructions of his client, he does not want to press the legal grounds relating to the validity of reopening of the assessment u/s 147 read with section 148 of the Act. In view of the statement of the Ld.Counsel for the asssessee, ground Nos.1 to 4 raised by the Ld.Counsel for the asssessee in both the appeals are hereby dismissed as not pressed....

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.... the CIT(A) who dismissed the appeal of the assessee. 5. Aggrieved by the same, the assessee has come up in appeal before us. 6. During the course of hearing before us, the Ld.Counsel for the assessee, at the outset itself, pointed out that the Hon'ble Apex Court has decided this issue in favour of the assessee in bunch of cases with the lead case being Pr.CIT, Shimla Vs. M/s Aarham Softronics in Civil No.1784 of 2019 dated 20.2.2019. 7. Ld.DR fairly conceded that the issue was settled in favour of the assessee by the above decision of the Apex court. 8. We have gone through the order of the Hon'ble Apex Court in the case of M/s Aarham Softronics (supra) and find that the Hon'ble Apex Court dealt with the entire scheme of th....

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....e profits and gains even from the year when there is substantial expansion in the existing unit. After all, this substantial expansion involves great deal of investment which has to be, at least 50% in the plant and machinery, of the book value thereof before taking depreciation in any year. With an expansion of such a nature not only there would be increase in production but generation of more employment as well, which would benefit the local populace. It is for this reason, carrying out substantial expansion by itself is treated as 'initial assessment year'. It would mean that even when an old unit completes substantial expansion, such a unit also becomes entitled to avail the benefit of Section 80-IC. If that is the purpose of the legisl....

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....down the correct law. (b) An undertaking or an enterprise which had set up a new unit between 7th January, 2003 and 1st April, 2012 in State of HimachalPradesh 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 ....