Commissioner Of Income Tax vs M/S Classic Binding Industries

The Supreme Court addressed the interpretation of Section 80-IC of the Income Tax Act, 1961, specifically whether an assessee can continue to claim a 100% tax exemption beyond the initial five-year period after substantial expansion of their manufacturing unit. The Court held that the exemption under Section 80-IC(3) is limited to the initial five years and cannot be extended based on subsequent expansions. The judgment clarified the conditions under which the exemption is applicable, affirming the High Court's decision.