TaxTMI 
TaxTMI 
2021 (1) TMI 916
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....ectronic products and handheld computer devices. The assessee had set-up two manufacturing unit, one is located in Bangalore and other unit is in Parwanoo, Himachal Pradesh. The assessee started the business activities at Parwanoo, Himachal Pradesh on 1St April, 2007 and set-up unit in the Parwanoo, Himachal Pradesh on the aforesaid date. It started claiming the 100% deduction in respect of profit derived from the aforesaid undertaking under section 80-IC from AY 08-09 onwards for the period of 5 years. 4. The assessee carried out and completed the substantial expansion on 28th March, 2012 (i.e. pertaining to assessment year 2012-13), wherein, it had installed plant and machinery of Rs. 5,76,054/-, which is 269% of book value of plant and machinery on the first day of the previous year in which substantial expansion took place (i.e. book value of existing plant and machinery on 1.4.2011 was Rs. 2,13,974/-). The aforesaid facts are duly disclosed in the form 10CCB filed for AY 2013-13 with the Income-tax authority. The subsequent installation or addition to plant and machinery was verified and confirmed by the Secretary of Single Window Clearance Agency, Parwanoo, which is author....
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....s to manufacture or produce any article or thing, not being any article or thing specified in the Thirteenth Schedule, or which manufactures or produces any article or thing, not being any articloor thing specified in the Thirteenth Schedule and undertakes substantial expansion during the period beginning- (i) on the 23rd day of December, 2002 and ending before the 1st day of April, 2012, in any Export Processing Zone or Integrated Infrastructure Development Centre or Industrial Growth Centre or Industrial Estate or Industrial Park or Software Technology Park or Industrial Area or Theme Park, as notified by the Board in accordance with the scheme framed and notified by the Central Government in this regard, in the State of Sikkim; or (i) on the 7th day of January, 2003 and ending before the 1st day of April, 2012, in any Export Processing Zone or Integrated Infrastructure Development Centre or Industrial Growth Centre or Industrial Estate or Industrial Park or Software Technology Park or Industrial Area or Theme Park, as notified by the Board in accordance with the scheme framed and notified by the Central Government in this regard, in the State of Himachal Prades....
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....ablishment, reconstruction or revival by the assessee of the business of any such undertaking as is referred to in section 33B, in the circumstances and within the period specified in that section; (ii) it is not formed by the transfer to a new business of machinery or plant previously used for any purpose. Explanation.-The provisions of Explanations 1 and 2 to sub-section (3) of section 80-IA shall apply for the purposes of clause (ii) of this sub-section as they apply for the purposes of clause (ii) of that sub-section. (5) Notwithstanding anything contained in any other provision of this Act, in computing the total income of the assessee, no deduction shall be allowed under any other section contained in Chapter VIA or in section 10A or section 10B, in relation to the profits and gains of the undertaking or enterprise. (6) Notwithstanding anything contained in this Act, no deduction shall be allowed to any undertaking or enterprise under this section, where the total period of deduction inclusive of the period of deduction under this section, or under the second proviso to sub-section (4) of section 80-IB or under section 10C, as the case may ....
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....n u/s 80-IC from AY 2012-13 for the period of 5 years. The assessee relied on the decision of M/s Stovekraft India vs. CIT (ITA no. 2024/2015) (HP HC), wherein, same issue has been decided in favour of the assessee. 8. The CIT(A) did not agree with the submission of the Assessee and directed the AO to allow deduction at 100% as against 25% allowed by the AO. Aggrieved by the order of the CIT(A), the assessee is in appeal before the Tribunal. The learned DR relied on the order of the AO. The learned counsel for the Assessee while relying on a decision of the Hon'ble Supreme Court in the case of Aarham Softronics (infra) also brought to our notice that relief allowed by the CIT(A) on similar issue in AY 2013-14 & 2014-15 has not been challenged by the revenue and has been accepted by the revenue. 9. We have carefully considered the rival submissions. In Prl.CIT Vs. Aarham Softronics Civil Appeal No. 1784/2019 judgment dated 20.2.2019, the Hon'ble Supreme Court overruled its earlier decision in the case of Classic Binding Industries Civil Appeal No. 7208 of 2018 judgment dated 20.8.2018 by observing that it omitted to take note of the definition 'initial assessment year' contain....