Deduction u/s 80IC stands allowed on the basis of consistency.

ITO Vs Indica Industries Pvt. Ltd. (ITAT Delhi)

Unless and until the position in initial year is disturbed, it is not possible to take a different view for the subsequent assessment years .

It can be seen from the impugned order that ld. CIT(A) noted that assessment year 2014-15 is not the initial year to claim the deduction u/s. 80IC of the Act in respect of the manufacturing unit-III at Kotdwar. Learned CIT(A) noted that the learned Assessing Officer denied the claim of deduction of the assessee on the ground that similar claim of deduction u/s. 80IC was denied to the assessee company for the assessment years 2011-12 to 2013-14 and no new material was brought on record for this particular year. Ld. CIT(A) recorded that in appeal, such a claim was allowed for the assessment years 2010-11 to 2013-14 after considering the contention of the assessee in the light of the facts of the case. Since there has not been any change in the facts and circumstances of the case during the assessment year 2014-15 from those involved for assessment years 2010-11 to 2013-14, while following the view taken in earlier years, ld. CIT(A) allowed such a claim for this year also. It is pertinent to note that the view taken by the first appellate authority in assessee’s own cases for the assessment years 2010-11 to 2013-14 remains undisturbed as on the date.

In these circumstances, we find it difficult to say that the impugned order suffers any illegality or irregularity, inasmuch as the assessment year 2014-15 is not the initial year whereas the initial year happens to be the assessment year 2010-11 and from assessment year 2010-11 to 2013-14, claim of the assessee for deduction u/s. 80IC stands allowed. Unless and until the position in initial year is disturbed, it is not possible to take a different view for the subsequent assessment years. On this ground, we uphold the findings of the ld. CIT(A) and dismiss ground No. 1 of the Revenue’s appeal.

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