The Deputy Commissioner Of Income Tax ... vs M/S Ace Multi Axes Systems Ltd.

The Supreme Court upheld the High Court's decision that an assessee cannot be denied the benefit of deduction under Section 80 IB of the Income Tax Act, 1961, even if it ceases to be a small scale industry during the ten consecutive years of eligibility. The Court emphasized that once the conditions of Section 80 IB(2) are satisfied, the deduction should not be revoked based on the change in status of the industry. The appeal by the revenue was dismissed, affirming the High Court's ruling in favor of the assessee.