M/S E.G. PHARMACEUTICALS,SOLAN vs. DCIT, CIRCLE, PARWANOO

We have heard the submissions and perused the material available on record. It is seen that the assessee in the year under consideration was deriving income from manufacturing of tablets, capsules, syrups etc. from Badi- Pinjore Highway, Tehsil Kasauli, District Solan (HP). After having claimed 100% deduction in the initial 5 years, the assessee thereafter claimed to have carried out substantial expansion and they claimed 100% deduction of eligible profits. The claim was rejected by the Assessing Officer and the deduction was restricted to 25% of the eligible profits under section 80IC. In the light of the decision of the jurisdictional High Court which has been taken into consideration by the Assessing Officer himself in the immediately subsequent assessment year i.e. 2015–16 wherein the AO considering the claim of substantial expansion in 2015-15 which happened to be the 8th year, has granted 100% deduction following the decision of the jurisdictional High Court in the order passed u/s 143 (3) dated 20/12/2017. We find that the claim of the assessee is allowable in law and facts. In the peculiar facts and circumstances of the present case the impugned order needs is set aside with the direction to the Assessing Officer to grant necessary relief on facts as already considered in 2015-16 assessment year and allow the claim of the assessee @ of 100% deduction under section 80IC. The said order was pronounced in the Open Court at the time of hearing itself. 4. In the result the appeal of the assessee is allowed. Order Pronounced in the Open Court on 28th Feb., 2018.