On appeal the Court held that The order passed by the Tribunal is not sustainable in the eyes of law, as it is solely based upon the judgment rendered by two Judge Bench of the Supreme Court in CIT v. Classic Binding Industries[2018]257\u00a0Taxman\u00a0324\/407 ITR 429, which judgment, admittedly, has been over-ruled by a Bench of five Judges of the Supreme Court in PCIT vs Aarham Softronics\u00a0[2019] 261\u00a0Taxman\u00a0529\/412 ITR 623, wherein the Supreme Court has clearly held that an assessee who sets up a new industry of a kind mentioned in section 80-IC(2) and starts availing exemption of 100 per cent tax under section 80-IC(3) (which is admissible for five years) can start claiming exemption at same rate of 100 per cent beyond the period of five years on the ground that the assessee now carried out substantial expansion in terms of section 80-IC(8)(ix) within aforesaid period of ten years in its manufacturing unit. \u00a0The judgment of the Constitution Bench of the Supreme Court is binding and, therefore, in terms thereof, the assesse is held entitled to the benefit under section 80-IC at the rate of 100 per cent of its profit and findings to the contrary cannot be sustained and are accordingly set aside. (AY. 2010-11)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 80IC : Special category states-Substantial expansion-Entitle exemption of 100 per cent beyond period of five years on ground that it now carried out substantial expansion in terms of section 80-IC(8)(ix) within aforesaid period of ten years in its manufacturing unit. [S.80IC(2), 80IC(3), 80IC(8)(ix), 260A] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-59254","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-fpI","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59254","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=59254"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59254\/revisions"}],"predecessor-version":[{"id":59255,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/59254\/revisions\/59255"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=59254"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=59254"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=59254"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}