| COURT: | ITAT Chandigarh |
| CORAM: | Bhavnesh Saini (JM), T. R. Sood (AM) |
| SECTION(S): | 80-IC |
| GENRE: | Domestic Tax |
| CATCH WORDS: | deduction, exemption, substantial expansion |
| COUNSEL: | Pavan Ved, Rakesh Gupta |
| DATE: | May 27, 2015 (Date of pronouncement) |
| DATE: | May 29, 2015 (Date of publication) |
| AY: | 2009-10 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 80-IC: The benefit of “substantial expansion” is applicable to units which were in existence at the time of announcement of scheme i.e. in AY 2004-05. Assesses who installed new units during this period and are now going for substantial expansion are not eligible to claim deduction u/s 80IC | |
If interpretation given by the assessee is to be accepted, the provision would become discriminatory for two classes of undertakings i .e. new units and old units. Because the old units would be entitled to 100% deduct ion on expansion for first five years and 25% thereafter whereas the new units would become entitled to deduction for 100% for first five years and again @ 100% on substantial expansion. Such discriminatory intention cannot be imputed to the Legislature.
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