TaxTMI 
TaxTMI 
2021 (4) TMI 52
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....ddition of Rs. addition of Rs. 5,68,44,423/- made by the Assessing officer on account of disallowance of deduction u/s 80IC by restricting deduction u/s 80IC of IT Act, 1961 @ 30% of the profits of undertaking as against deduction claimed by the assessee 100% of profits of undertaking at Rs. 8,12,06,319. 2. On the facts and circumstances of the case and in law the Ld CIT(A) erred in holding that there can be more than one initial Assessment year for the purpose of deduction u/s 80IC of the Income Tax Act, 1961 whereas the there is neither concept of more than one initial assessment year not intention of legislature behind section of 80IC of the Income Tax Act, 1961. 3. Whether on the facts and circumstances of the case the....
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.... Ayurvedic medicines, Veterinary medicines and animal field supplements. The assessee company filed its return of income on 29/09/2013 declaring total income at Rs. 7,80,02,150/-. The assessment was completed on 7/3/2016 and the Assessing Officer assessed the total income at Rs. 13,89,49,250/-. The Assessing Officer made addition of Rs. 14,37,556/- towards the expense in regard to provisions of Section 35DD. The Assessing Officer further made addition of Rs. 5,68,00,000/- in respect of deduction u/s 80IC and addition of Rs. 26,65,125/- in respect of disallowance u/s 14A read with Rule 8D. 4. Being aggrieved by the assessment order, the assessee filed appeal before the CIT(A). The CIT(A) partly allowed the appeal of the assessee. 5. Th....
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....tion 80IC of the Act. Sub-section (3) has prescribed period of 10 years commencing with initial assessment year. Sub-section 3 further prescribed deduction at the rate of 100% of such profit and gains from the undertaking or an enterprise for five assessment years commencing with initial assessment year and thereafter deduction allowable @ 25% (or @ 30% where the assesee is a company) of the profit and gains. Further, sub-section (6) puts a cap of 10 years for claiming deduction under the section. In the case, the assessee has availed 100% of the profit and gains as deduction under section 80IC of the Act for five assessment years commencing with the initial assessment year, i.e., 2007- 08 to 2011-12 and thereafter the assessee carried out ....
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....0-IC are materially different. The definition of 'initial assessment year' under Section 80-IC has made all the difference. Therefore, we are of the opinion that the aforesaid judgment does not lay 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 Himachal Pradesh 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 ca....
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.... November 2017 in the group of cases with the lead case titled as M/s Stovekraft India vs. Commissioner of Income Tax, ITA No.20 of 2015, and it was pointed out that the Hon'ble High Court had decided the issue in favour of the assessee, holding that there is no bar in the said section denying the benefit of hundred percent deduction to new units undertaking substantial expansion. Our attention was drawn to the relevant conclusions of the Hon'ble High Court in this regard at para 55 of the order as under: "55.Thus, in view of the above discussion, these appeals are allowed and orders passed by the Assessment Officer as well as the Appellate Authority and the Tribunal, in the case of each one of the Assesses, are quashed and set asi....
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....s, however, submitted that the issue be restored to the file of the Assessing officers for verification as to whether the assessee has actually carried out the substantial expansion to be entitled to claim deduction u/s 80IC of the Act. 8. We do not agree to the above contention raised by the Revenue at this stage. A perusal of the orders of the Assessing officers reveal that the Assessing officers have not disputed that the assessee unit has carried out substantial expansion as provided under clause (b) of sub section (2) read with clause (ix) of sub section (7) of section 80IC of the Act. Almost similar view has also been taken by the Hon'ble Himachal Pradesh High Court in the case of 'M/s Stovekraft India vs. Commissioner of....