2018 (3) TMI 1868

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.... are that the assessee is an individual and conducts his business in the name and style as M/s Electron Automates. He is engaged in the business of designing and developing innovative electrical and electronic control gear of existing products in various fields. The assessee filed his return of income declaring at 'nil'. Notices u/s 143(2) and 142(1) of the Act were issued in response to which the Authorised representative representing the assessee appeared before the AO and complied with the requisitions required by the AO. The AO, whereby restricted the claim of deduction u/s 80IC of the Act to 25% as against claim of 100% vide his order dated 29.02.2002. In challenge in the First Appellate proceedings, the CIT(A) by placing reliance on t....

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....nt of expansion of the existing unit established after coming into force the provisions of section 80le. My view is further strengthened from the provisions contained in section 80IC(6) which can be workable only if the interpretation placed by the appellant is accepted. Moreover the issue is covered by the decisions of Hon'ble Delhi Bench of ITAT in the case of Tirupati LPG Industries Ltd. In ITA No. 2786/Del/2013 dated 10.2.2016. I further find that deduction has been allowed in respect of the profits arrived at in the unit which went through expansion. The AO in the second year cannot have different view in the view of the decision of the Hon'ble Gujrat High Court cited above. In view of the above-the AO is directed to allow 100%....

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....uirement 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 7.1.20013 up to 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)." 5. It is also the submission of the ld. AR that the Delhi Benches of ITAT held that even if an existing unit which is claiming deduction u/....