COMMISSIONER OF INCOME TAX Vs. USHA INFRASYSTEMS

JUDGEMENT

(1.) Both the appeals have been heard and are being decided together as common questions of law and facts arise therein.

(2.) Respondent in both the appeals (hereinafter referred to as the 'assessee') had begun production of Foundation Anchor Rods for Windmills (for short, "Anchors") w.e.f. 29/6/2004 in Industrial Area Parwanoo, District Solan, H.P.

(3.) The assessee, for the first time, claimed 100% deduction on the income under sub-clause (ii) of Sub Sec. (2) of Sec. 80IC of the Income Tax Act, 1961 (for short 'the Act") for the assessment year 2005-06. The Assessing Officer denied the deduction so claimed and vide assessment order dtd. 30/11/2007 passed under Sec. 143(3) of the Act assessed total income of assessee at Rs.1,66,61,240.00. The assessee assailed the assessment order in appeal No. IT/212/2007-08/SML. The appeal of assessee was dismissed by CIT(A), Shimla on 29/4/2009. The assessee filed further appeal before the ITAT, Chandigarh which was allowed on 30/11/2009 as ITA No. 499/Chd, 2009. Revenue assailed the order dtd. 30/11/2009 passed by the ITAT Chandigarh in ITA No. 15/2010 before this Court, which later came to be withdrawn by the Revenue on 22/12/2021 on account of involvement of low tax effect.