TaxTMI 
TaxTMI 
2022 (9) TMI 771
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....ome Tax Act, 1961 (the Act). 2. In spite of issue of notice none appeared on behalf of the assessee nor any adjournment was sought. We dispose of these appeals after hearing the ld. DR. 3. On hearing the ld. DR and perusing the orders of the lower authorities we find that the ld. CIT (Appeals) sustained the disallowance of deduction claimed by the assessee under section 80-IC of the Act following the decision of the Hon'ble Supreme Court in the case of Classic Binding Industries [(2018) 407 ITR 429 (SC)] wherein the Hon'ble Apex court held that once the assessee had started claiming deduction under section 80-IC of the Act and the initial assessment year has commenced within the period of 10 years there cannot be any initial year thereby ....
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....e two initial assessment years, one for the purpose of Section 80-IB and other for the purposes of Section 80-IC of the Act. Once we find that there can be two initial assessment years, even as per the definition thereof in Section 80-IC itself, the legal position comes at par with the one which was discussed in Mahabir Industries. 24.The aforesaid discussion leads us to the following conclusions: (a) Judgment dated 20th August, 2018 in Classic Binding Industries case omitted to take note of the definition 'initial assessment year' contained in Section 80-IC itself and instead based its conclusion on the definition contained in Section 80-IB, which does not apply in these cases. The definitions of 'initial assessment year' in the two se....
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....ndertaken, say, in 8th year by an assessee such an assessee would be entitled to 100% deduction for the first five years, deduction @ 25% of the profits and gains for the next two years and @ 100% again from 8th year as this year becomes 'initial assessment year' once again." 5. Since the Hon'ble Supreme Court in the case of Pr. CIT Vs. Aarham Softronics (supra) held that the decision of Classic Binding Industries (supra) is no more good law the ratio laid down by the Hon'ble Apex court in its latter judgement i.e. Pr. CIT Vs. Aarham Softronics (supra) applies to the facts of the assessee's case. 6. On perusal of the assessment order passed by the Assessing Officer we notice that the assessee firm is engaged in the business of manufacturi....