Deduction u/s 80IC cannot be claimed for more than 5 years for units Set Up in specified areas in Himachal Pradesh

M/s Shree Dhanwantri Herbals Vs. DCIT (ITAT Chandigarh)

Benefit of deduction u/s 80IC of the Act @ 100% was available to new units, only on the setting up of the unit and not on account of substantial expansion undertaken by it. It was further held that there can be only one initial assessment year for claiming 100% deduction of profits therefrom ,for the purpose of section 80 IC of the Act and that in any case the benefit of 100% deduction, for units set up in specified areas in the state of Himachal Pradesh, cannot be claimed beyond the period of 5 years.

FULL TEXT OF THE ITAT ORDER IS AS FOLLOWS:-

The appeal filed by the assessee is directed against the order of Ld. CIT(A), Shimla dated 29.7.20 16 for assessment year 20 12-13.

2. The assessee has raised the following grounds:-

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