Deduct'n u/s 80IC (of Income Tax Act, 1961) is not allowed @ 100%,if 100% exempt'n in 1st 5 yrs,alresdy claimed on plea,during yr it undertook expansion,only 25% allowed
Deduct'n u/s 80IC (of Income Tax Act, 1961) is not allowed @ 100%,if 100% exempt'n in 1st 5 yrs,alresdy claim…
Assessee appealed against order of Pr.CIT-2, dtd 7.12.2015. Only issue(Out of many issues raised by assessee),on which CIT initiated proceedings u/s 263 (of Income Tax Act, 1961) , was whether assessee is eligible to claim deduction u/s 80IC (of Income Tax Act, 1961) in relevant A.Y. @ 100%, after claiming 100% exemption in first five years on plea that during year it has undertaken substantial expansion of undertaking. Counsel for assessee submitted before us that issue stands covered against assessee by order of ITAT., Chandigarh Bench in case of Hycron Electronics Vs. ITO, . D.R. agreed with submission made by counsel for assessee. On perusal of the order of ITAT, in above stated case , we see that ITAT,after considering detailed submission of assessee, has given a very elaborate decision. : Since no distinguishing facts were brought to our notice, following decision of ITAT, we dismiss ground of appeal raised by assessee. :: In result,appeal of assessee is dismissed.-501534
Assessee's appeal is against order of Principal Commissioner of Income Tax-2, dtd 7.12.2015, passed u/s 263 (of Income Tax Act, 1961), grounds being : Pr. CIT - II,is defective both in Law & Facts of case,not justified in holding Assessment by AO as being erroneous & prejudicial to interest of Revenue & not been justified in cancelling original Assessment U/s 263 (of Income Tax Act, 1961), framed U/s 143(3) (of Income Tax Act, 1961) inspite of fact that all information & desired evidence. Also not justified in restricting claim of Assessee for Deduction U/s 80IC (of Income Tax Act, 1961) @ 25% instead of @ 100% as upheld by AO, when Appellant fulfills all reqd prerequisite conditions for claiming deduction,100%, even when it undertook expansion during year under consideration and did'nt appreciate that nothing stopped Assessee from installing a New Unit & claim 100% exemption,U/s 80IC (of Income Tax Act, 1961) instead of making expansion in existing unit as year under consideration duly falls within period as per u/s 80IC(2) (of Income Tax Act, 1961).. Only issue,on which CIT initiated proceedings u/s 263 (of Income Tax Act, 1961) , was whether assessee is eligible to claim deduction u/s 80IC (of Income Tax Act, 1961) in relevant A.Y. @ 100%, after claiming 100% exemption in first five years on plea that during year it has undertaken substantial expansion of undertaking. Counsel for assessee submitted before us that issue stands covered against assessee by order of I.T.A.T., Chandigarh Bench in case of Hycron Electronics Vs. ITO, in ITA No.798/Chd/2012 dated 27.5.2015. D.R. agreed with submission made by counsel for assessee. On perusal of the order of the I.T.A.T., Chandigarh Bench in case of Hycron Electronics (supra), we see that I.T.A.T., after considering detailed submission of assessee, has given a very elaborate decision. : Since no distinguishing facts were brought to our notice, respectfully following decision of I.T.A.T., Chandigarh Bench in Hycron Electronics (supra), we dismiss ground of appeal raised by assessee. :: In the result, the appeal of the assessee is dismissed.
Case Reference PAN: AAOPT1096K; (Appellant) Vs. The Principal C.I.T-II, Sector - 17, Chandigarh; (Respondent)
Shri Arun Trehan; Plot No.3, Timber Market; Sector - 26, Chandigarh
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