Content Provider | Supreme Court of India |
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e-ISSN | 30484839 |
Language | English |
Access Restriction | NDLI |
Subject Keyword | Income Tax Act 1961: s.80-IC |
Content Type | Text |
Resource Type | Law Judgement |
Jurisdiction | India |
Act(s) Referred | Finance Act, 2003 (32 of 2003) Income Tax Act, 1961 (43 of 1961) |
Case Type | Appeal |
Court | Supreme Court of India |
Disposal Nature | Appeal Allowed |
Headnote | Income Tax Act, 1961: s.80-IC – Whether an assessee whosets up a new industry of a kind mentioned in sub-section (2) ofs.80-IC of the Act and starts availing exemption of 100% tax undersub-section (3) of s.80-IC (which is admissible for five years) canstart claiming the exemption at the same rate of 100% beyond theperiod of five years on the ground that the assessee has now carriedout substantial expansion in its manufacturing unit – Held: Apragmatic and reasonable interpretation of s.80-IC is that once theinitial Assessment Year commences and an assessee, by virtue offulfilling the conditions laid down in sub-section (2) of s.80-IC,starts enjoying deduction, there cannot be another “InitialAssessment Year” for the purposes of s.80-IC within the said periodof 10 years, on the basis that it had carried substantial expansionin its unit – Thus, after availing deduction for a period of 5 years@ 100% of such profits and gains from the ‘units’, the assesseeswould be entitled to deduction for remaining 5 Assessment Years @25% (or 30% where the assessee is a company), as the case maybe, and not @ 100%.Income Tax Act, 1961: ss.80-IA, 80-IB and 80-IC – Gist ofthe legislative history and purpose behind the insertion of ss.80-IA,80-IB and 80-IC – Discussed. |
Judge | Hon'ble Mr. Justice Arjan Kumar Sikri |
Neutral Citation | 2018 INSC 725 |
Petitioner | Commissioner Of Income Tax |
Respondent | M/s. Classic Binding Industries |
SCR | [2018] 9 S.C.R. 949 |
Judgement Date | 2018-08-20 |
Case Number | 7208 |
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