11.Mahabir Industries vs. Pr. CIT (2018) 406 ITR 315 (SC)
Industrial undertaking – Deduction u/s.
80IA, 80IB and 80IC - The Assessees had started claiming and were allowed
deductions from the Assessment Years 1998-99 and 1999-2000 u/s. 80-IA and from
the Assessment Year 2000-01 to Assessment Year 2005-06 under section 80-IB of
the Act and thus were entitled to the deduction under the new provision i.e.
section 80-IC on fulfilling conditions contained in sub-section (2) of section
80-IC for the first time for the Assessment Year 2006-07
manufactured polythene for which it had its factory in Shimla, Himachal
Pradesh. The activity undertaken by the Assessee, an industrial undertaking,
qualified for exemption from income tax u/s. 80-IA of
under section 80-IA was claimed and allowed for two Assessment Years i.e.
1998-99 and 1999-2000.
Section 80-IA of the
Act was originally introduced in the year 1991 by the Finance (No. 2) Act, 1991
w.e.f. April 1, 1991. There were amendments in the section from time to time.
This section was amended by the Finance Act, 1999 w.e.f. April 1, 2000. Along
with this provision, section 80-IB was also introduced for the first time by
the same Finance Act, 1999.
From the Assessment
Year 2000-01 to Assessment Year 2005-06, the Assessee claimed deduction u/s.
in the form of section 80-IC was inserted by Finance Act, 2003 w.e.f. April 1,
2004. The provisions of section 80-IC provided deduction to manufacturing units
situated in the State of Sikkim, Himachal Pradesh and Uttaranchal and
North-Eastern States. The deduction was provided to new units established in
the aforesaid States, and also to existing units in those States if substantial
expansion was carried out.