| COURT: | Himachal Pradesh High Court |
| CORAM: | Ajay Mohan J, Sanjay Karol J |
| SECTION(S): | 80-IC |
| GENRE: | Domestic Tax |
| CATCH WORDS: | CBDT Circular, initial assessment year, interpretation of statutes, substantial expansion |
| COUNSEL: | Bishwajit Bhattacharyya, Gaurav Jain |
| DATE: | November 28, 2017 (Date of pronouncement) |
| DATE: | December 7, 2017 (Date of publication) |
| AY: | 2005-06 |
| FILE: | Click here to view full post with file download link |
| CITATION: | |
| S. 80-IC: Entire law on concept of "initial assessment year" and "substantial expansion" explained. Also, law on interpretation of statutes which confer incentives for promoting development explained. Law on interpretation when there is doubt also explained. Law on whether CBDT Circulars are mere external aids in interpretation of a statute or more also explained | |
“substantial expansion” can be on more than one occasion. Meaning of expression “substantial expansion” is defined in clause [8(ix)] of Section 80-IC and with each such endeavour, if the assessee fulfills the criteria then there cannot be any prohibition with regard thereto. For what is important, in our considered view, is not the number of expansions, but the period within which such expansions can be carried out within the window period [7.1.2003 to 1.4.2012], and it is here we find the words “begun” or “begins” and “undertakes substantial expansion” during the said period, as stipulated under clause (b) sub-section 2 of Section 80- IC, to be of significance. The only rider imposed is by virtue of sub-section (6) of Section 80-IA, which caps the deduction with respect to Assessment Years to which a unit is entitled to
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