SH. VIPIN GUPTA,SOLAN vs. DCIT, CIRCLE, PARWANOO

The short issue involved in this appeal is as to whether the period for which the assessee has claimed deduction u/s 80 IB of the Income-tax Act, 1961 (in short 'the Act') is to be included for the purpose of period of deduction claimed by the assessee u/s 80IC of the Income-tax Act on account of substantial expansion.

At the outset, both the Ld. Representatives of the parties have submitted that the issue is squarely covered in favour of the assessee by the decision of the Hon'ble Supreme Court in the case of ‘Mahabir Industries Vs. PCIT’ in Civil Appeal No (s) 4765-4766 of 2018 vide order dated 18.5.2018, wherein, the Hon'ble supreme Court has held that benefit of provisions of section 80IC of the Act shall get triggered in the year in which such substantial expansion is completed and that year is to be treated as initial assessment year, irrespective of any deduction, claimed by the assessee u/s 80IB of the Act.

In view of this, the issue involved in this appeal is covered in favour of the assessee. The Assessing officer is, therefore, directed to grant deduction to the assessee u/s 80IC of the Act as per the principle of law laid down by the Hon'ble Supreme Court in the case of ‘Mahabir Industries Vs. PCIT’ (supra). The appeal of the assessee stands allowed. Order pronounced in the Open Court on 05.10.2018