|CORAM:||Bhavnesh Saini (JM), T. R. Sood (AM)|
|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)|
|FILE:||Click here to view full post with file download link|
|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.