TaxTMI 
TaxTMI 
2020 (11) TMI 908
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....ng grounds: - "On the facts & circumstances of the case, the Ld. CIT(A) erred in: 1. Deleting the addition of Rs. 2,81,94,648/- on account of disallowance made u/s 80IC by allowing 100% deduction for 6th assessment year instead of 25% as the assessee itself started claiming deduction u/s 80IC from initial assessment year i.e. 2008-09. 2. Ignoring the provisions of section 80IC(3)(ii) which clearly and unambiguously state that undertakings eligible for deduction u/s 80IC shall be eligible for 100% deduction for 5 assessment years commencing with the initial assessment (as defined u/s 80IC(8)(v)) and thereafter at the rate of 25 percent. 3. Allowing 100% deduction u/s 80IC for the 6th assessment year whereas Hon'ble Gujarat High Co....
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....see filed a return of income claiming total income of Rs. 38,65,418/- which was subjected to scrutiny assessment. AO made addition of Rs. 2,81,94,648/- while making disallowance u/s 80IC of the Act by restricting the same to 25% instead of 100% claimed by the assessee on the ground that 100% deductions u/s 80IC is available to the units located in North Indian States for the first 5 years and @ 25%/30% for the next 5 years. AO also made ad hoc disallowance of Rs. 12,86,922/- i.e. @ 10% on car expenses, car insurance expenses, interest on car loan, car depreciation claimed by the assessee and thereby framed the assessment at Rs. 3,23,31,850/- u/s 143(3). 3. Assessee carried the matter before Ld. CIT(A) by way of filing the appeal who has de....
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....nt years viz. 2014-15, 2015-16, 2016-17 and 2017-18 100% deductions have been allowed by Ld. CIT(A) on the ground that the assessee has made substantial expansion in the existing unit. It is also not in dispute that for AY 2015-16, 2016-17 and 2017-18 no appeal has been filed by the Revenue against the appeal allowed by Ld. CIT(A). 7. In the backdrop of the aforementioned facts and circumstances of the case the sole question arises for determination in this case is as to whether "assessee is entitled for deduction under 80IC @ 100% after substantial expansion carried out during financial year 2011-12. 8. When it is not in dispute that the assessee has carried out substantial expansion during financial year 2011-12 by installing plant and ....
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....see 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 to 100% deduction again for the next five years. On the....