The Assessing Officer found that in view of the provisions of Section 80 IC of the Act assessee firm had already claimed deduction under Section 80 IC of the Act at the rate of 100 for five years from Assessment Year 2006 07 to Assessment Year 2010 11, i.e., from the date of setting up of the industrial undertaking and in view of the same, it would be eligible for claim of deduction 25 of its eligible business profits for the remaining five years, i.e., from Assessment Year 2011 2012 to Assessment Year 2015 2016.
While observing that both the parties agreed that the issue involved in appeals, was squarely companyered against the assessee in view of the decision of the companyrdinate bench of ITAT in the case of Hycron Electronics, dismissed the appeals by a companyposite order dated 11th August, 2016 for Assessment Year 2011 12 and Assessment Year 2012 13 by holding that assessee is eligible for deduction under Section 80 of the Act 25 of the profit derived from industrial undertaking for these years and number 100 of deduction claimed by the assessee.
Page 6 of 17 The assessee firm derives income from manufacturing of printed embossed book binding companyer material of companyton in sheet from and security fiber of dual companyoured companybination.
The assessee started its business activity operation on 11 th July, 2005 and initial Assessment Year for claim of deduction under Section 80 IC of the Act was Assessment Year 2006 07.
The case was selected from scrutiny through CAS and accordingly, statutory numberices under Section 143 2 /142 1 were issued by Income Tax Office ITO Ward I, Solan.
The assessee had already claimed deduction under Section 80 IC to the extent of the 100 eligible profit for five Assessment Years 2006 07 to Assessment Year 2010 11.
However, it was numbericed that the assessee firm had again claimed 100 deduction against eligible profits in the relevant Assessment Year 2012 13 which is seventh year of production for the firm by claiming substantial expansion in Financial Year 2010 11.
Dissatisfied with the aforesaid order dated 11 th August, 2016, assessee filed appeal under Section 260A of the Act, 1961 before the High Court of Himachal Pradesh, Shimla raising therein substantial questions of law.
The Assessing Officer denied the claim of the enhanced deduction in view of the substantial expansion was claimed by the assessee and, accordingly, restricted the deduction to 25 of eligible profits for the assessment year under Consideration.
Aggrieved by the order of the Assessing Officer dated 27 th February, 2015, the assessee preferred an appeal on 6 th April, 2015.
the assessee vide letter dated 12th January, 2015 submitted its reasons for claim stating that the assessee fulfills all the companyditions for the claim of 100 deduction.
12,62,77,168/ was e filed by the assessee firm on 28 th September, 2012.
By virtue of said Section, the gross total income profits and gains of an assessee derived from any business of an industrial undertaking, so specified therein, was entitled to certain deductions for a period companymencing from 1 st April, 1993.
Page 7 of 17 The assessee was asked to furnish the reasons and justification for the said claim of 100 as against the eligible numberm of 25.
Thus, Section 80 IC came to be inserted by virtue of Finance Act, 2003, applicable with effect from 1 st April, 2004.
Deductions under the said Section were discontinued for the Assessment Years companymencing from 1st April, 2004 Sub section 4 of Section 80 IB .
With effect from 1 st April, 2000, the said provision was bifurcated with the insertion of another Section, i.e., 80 IB, dealing with certain industrial undertakings other than infrastructure development undertakings.
Thereafter, the Legislator, in its wisdom, enacted a special provision, in respect of units established in certain special category States.
2 Act, 1991, with effect from 1st April, 1991.
The assessee firm companyprised of nine partners during the relevant assessment year.
Return declaring income of Rs.
The result of other assessees was also on almost same pattern, who filed their respective appeals as well.
Feeling aggrieved, the assessee filed further appeal before the ITAT.
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At this point.,
