TaxTMI 
TaxTMI 
2021 (11) TMI 633
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....for signature and filing to Sh. Gajendra Arya. The Accountant placed the aforesaid documents in another file and forgot to get signature of the assessee on the same. It was only when the appeal for subsequent years was decided by the CIT(A) it transpired that the appeal against the order of CIT(A) for A.Y. 2012-13 was not filed before the Tribunal. An affidavit of Shri Gajendra Arya has been filed wherein he has admitted that the delay in filing of appeal was because of his unintentional mistake. 3. After examining the affidavit we are satisfied that the delay in filing of the appeal is on account of unintentional bonafide mistake. The Hon'ble Supreme Court of India in the case of Ram Nath Sahu Vs. Gobardhan Sao And Others reported as 2002(3)(SCC) 195 has held that acceptance of explanation for condonation of delay should be the rule and refusal an exception. The application seeking condonation of delay should not be rejected on hyper technical reason or by taking pedantic view when the stakes are high and/or arguable points of facts and law are involved. Rejecting the application for seeking condonation would by taking a hyper technical view cause enormous loss or irreparable....
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....he Department vehemently defended the impugned order and prayed for dismissing appeal by the assessee. The ld. DR submitted that the assessee has already availed deduction under section 80IC of the Act, at 100% for initial five Assessment Years as per the provisions of the section. After initial five assessment years the assessee is eligible for deduction @ 25%. 6. We have heard the submissions made by rival sides and have examined the orders of authorities below. The solitary issue in the present appeal is, whether the assessee is entitled to claim 100% deduction u/s. 80IC on the profits from the eligible undertaking during the period relevant to the assessment year under appeal. The brief facts as emanating from the record are; the assessee has set up an undertaking in the State of Himachal Pradesh, the assessee started its commercial production on 24/05/2005 i.e; during the period relevant to A.Y. 2006-07 and that was initial assessment year of assessee's claim of deduction under section 80IC of the Act. The assessee claimed deduction under the aforesaid section @ 100% for the initial five assessment years. Thereafter, the assessee made "substantial expansion" during the pe....
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....the contingency provided therein. 16. As per this definition, there can be 'initial assessment year', relevant to previous year, in any of the following contingencies: (i) The previous year in which the undertaking or the enterprise begins to manufacture or produce article or things; or (ii) Commences operation; or (iii) Completes substantial expansion First two events are relatable to new units whereas third incident would occur in respect of existing units. The benefit of Section 80-IC is, thus, admissible not only when an undertaking or enterprise sets up new unit and starts manufacturing or producing article or things. The advantage of this provisions is also accrued to those existing units, if they carry out "substantial expansion" of their units by investing required capital, in the assessment year relevant to the previous year. "Substantial expansion" is defined in clause (ix) of sub-section (8) of Section 80-IC and it reads as under: "(ix) "Substantial expansion" means increase in the investment in the plant and machinery by at least fifty per cent of the book value of plant and machinery (before taking depreciation in any year), as on the first day of....
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....es place, another 'initial assessment year' gets triggered. This new event entitles that unit to start getting deduction @ 100% of the profits and gains. At the same time, new period of 10 years does not start. It is because of the reason that total period for which deduction can be allowed is capped at 10 years, inasmuch as sub-section (6) in no uncertain terms stipulates that deduction shall be not allowed for a period exceeding 10 assessment years. In fact, this period of 10 years relates not only in respect of deduction under Section 80-IC but under the second proviso to sub-section (4) of Section 80-IB as well. It would mean that total deduction under Section 80-IB as well as 80-IC is for a period of 10 years. 19. Having examined the scheme in the aforesaid manner, we arrive at the conclusion that the definition of 'initial assessment year' contained in clause (v) of sub-section (8) of Section 80-IC can lead to a situation where there can be more than one "initial assessment year" within the said period of 10 years. As per sub-section (6), cap is on the 10 assessment years. It is not on quantum. We have also to keep in mind the purpose for which Section 80-IC....
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....gislature and in construing a statute, it is necessary, to seek the intention of its maker. A statute has to be construed according to the intent of them that make it and the duty of the court is to act upon the true intention of the legislature. If a statutory provision is open to more than one interpretation the court has to choose that interpretation which represents the true intention of the legislature. This task very often raises difficulties because of various reasons, inasmuch as the words used may not be scientific symbols having any precise or definite meaning and the language may be an imperfect medium to convey one's thought or that the assembly of legislatures consisting of persons of various shades of opinion purport to convey a meaning which may be obscure. It is impossible even for the most imaginative legislature to forestall exhaustively situations and circumstances that may emerge after enacting a statute where its application may be called for. Nonetheless, the function of the courts is only to expound and not to legislate. Legislation in a modern State is actuated with some policy to curb some public evil or to effectuate some public benefit. The legislatio....
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....l rule may not accept. 29. We are not suggesting that literal rule dehors the strict interpretation nor one should ignore to ascertain the interplay between "strict interpretation" and "literal interpretation". We may reiterate at the cost of repetition that strict interpretation of a statute certainly involves literal or plain meaning test. The other tools of interpretation, namely, contextual or purposive interpretation cannot be applied nor any resort be made to look to other supporting material, especially in taxation statutes. Indeed, it is well settled that in a taxation statute, there is no room for any intendment; that regard must be had to the clear meaning of the words and that the matter should be governed wholly by the language of the notification. Equity has no place in interpretation of a tax statute. Strictly one has to look to the language used; there is no room for searching intendment nor drawing any presumption. Furthermore, nothing has to be read into nor should anything be implied other than essential inferences while considering a taxation statute. 30. Justice G.P. Singh, in his treatise Principles of Statutory Interpretation (14th Edn. 2016 p. 879) after ....
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....[for Himachal Pradesh] stipulates that deduction shall be @ 100% for five years commencing with "initial assessment year" and thereafter @ 25%. "Initial assessment year", as per Section 80-IC (8)(v) means, year in which the unit begins/commences to manufacture/produce or completes "substantial expansion" [As per Section 80-IC(8)(ix)]. 46. The moment "substantial expansion" is completed as per Section 80-IC(8)(ix), the statutory definition of "initial assessment year" [Section 80-IC(8)(v)] comes into play. And consequently, Section 80-IC(3)(ii) entitles the unit to 100% deduction for five years commencing with completion of "substantial expansion", subject to maximum of ten years as per Section 80-IC(6). 47. A unit that started operating/existed before 7.1.2003 was entitled to 100% deduction for first five years under Section 80-IB(4). If this unit completes substantial expansion during the window period (7.1.2003 to 31.3.2012), it would be eligible for 100% deduction again for another five years under Section 80-IC(3)(ii), subject to ceiling of ten years as stipulated under Section 80-IC(6)." We are inclined to agree with the aforesaid interpretation. 22. It would be pertin....