Deduction under section 80-IB(3) for SSI unit

[brett_lee38]

Whether, for claiming deduction under section 80-IB, an assessee should maintain the status of Small Scale Industries throughout the ten years or it may granted deduction in that subsequent year in which it became large industry .Means a firm in the initial year is SSI and has claimed deduction, however in subsequent year it would not remain SSI then whether the deduction would be available to him or not. Since section says for TEN years.

Plz give me some decisions on the above issue. I shall be highly gratefull to the respondent

[pawansingla]

 The answer to your question is in definition of SSI.It provides that investment in plant & machinery should not exceed Rs. one crore/3 crore/5 crore as may be the case.Once you have made investment exceeding that limit ,then you ceased to be an SSI.Subsequently there is no chance of deduction as it talka about investment and not plant and machhinery.