Deduction U/s. 80-IC on substantial expansion and initial assessment year

DCIT Vs M/S Shyam Sunder Khemka (ITAT Delhi)

Assessee being a manufacturer substantial expansion was carried out in asst. yr. 2008-09 hence, initial assessment year would be refixed 2008-09 and assessee would be eligible to claim 100% deduction for next five assessment years and thereafter 25% for next 5 assessment years subject to restriction imposed under sub-section (6) of section 80-IC.

Since the deduction u/sec 80le shall not in any case exceeds 10 assessment years, as specified in sub section (6), the appellant shall be eligible to claim deduction upto A. Y. 2013-14 at rate of deduction as may be applicable.

FULL TEXT OF THE ITAT JUDGMENT

The Revenue has filed this Appeal against the impugned Order dated 25.8.2014 of the Ld. CIT(A)-VIII, New Delhi relevant to assessment year 2011-12.

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