Dismissing the appeal of the revenue the Court held that; an assessee availing exemption of 100% tax on setting up of a new industry, which is admissible for 5 years, and either on the expiry of 5 years or thereafter (but within 10 years) from the date when these assessees started availing exemption, they carried out substantial expansion of its industry would become ‘initial assessment year’, and from that assessment year, assessee shall been entitled to 100 per cent deductions from that year. Intention of the legislature to be seen . (CIT v.Classic Binding Industries (2018) 407 ITR 429 (SC) is held not good law and reversed). (CA 1784 of 2019, dt. 20.02.2019) ( AY. 2009-10 to 2011-12)
PCIT v. Aarham Softronics (2019) 419 ITR 623/ 261 Taxman 529 / 175 DTR 105 / 307 CTR 233(SC), www.itatonline.org.Editorial : From the judgement in Stoverkraft of India v CIT ( 2017) 160 DTR 378 / ( 2018) 300 CTR 5 ( HP) (HC )
S. 80-IC : New Industrial undertaking–Special category States- Initial assessment year -An assessee availing exemption of 100% tax on setting up of a new industry, which is admissible for 5 years, and either on the expiry of 5 years or thereafter (but within 10 years) from the date when these assessees started availing exemption, they carried out substantial expansion of its industry would become ‘initial assessment year’, and from that assessment year, assessee shall been entitled to 100 per cent deductions from that year.