Home Case Index All Cases Income Tax Income Tax + AT Income Tax - 2022 (4) TMI AT This
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2022 (4) TMI 737 - AT - Income TaxDeduction u/s 80IA - initial/first year - interpreting 'initial assessment year' as mentioned in subsection (5) of section 80IA - HELD THAT:- Circular No.1/2016 issued by the CBDT that an assessee who is eligible to claim deduction u/s 80IA has the option to choose the initial/first year from which it may desire the claim of deduction for ten consecutive years, out of a slab of fifteen (or twenty) years, as prescribed under that sub-section.the term 'initial assessment year' would mean the first year opted for by the assessee for claiming deduction u/s 80IA. However, the total number of years for claiming deduction should not transgress the prescribed slab of fifteen or twenty years, as the case may be and the period of claim should be availed in continuity. Thus the Assessing Officers are directed to allow deduction u/s 80IA in accordance with this clarification and Standing Counsels/D.R.s are suitably instructed pending litigation on allowability of deduction u/s 80 IA shall also not be pursued to the extent it relates to interpreting 'initial assessment year' as mentioned in subsection (5) of section 80IA of the Act. Set off of losses as per section 80IA(5) for computation of income of eligible unit - Following this Circular the SLP filed by the department was also dismissed against High Court's ruling that loss in year earlier to initial assessment year already absorbed against profit of other business cannot be notionally brought forward and set off against profits of eligible business as no such mandate is provided in section 80-IA(5) of the IT Act reported in Assistant Commissioner of Income-tax, Tirupur-Vs-Velayudhaswamy Spinning Mills (P.) Ltd.[2016 (11) TMI 373 - SC ORDER] - Following the same we hereby reject the Grounds of appeal filed by the Revenue and allow the claim of deduction u/s.80IA in favour of the assessee. Disallowance of deduction of amount from the book profits under s.115JB - Tribunal in [2022 (4) TMI 642 - ITAT AHMEDABAD] allowed the claim of deduction u/s 80IA of the Act in favour of the assessee for earlier assessment years. Considering above, this issue is also remitting back to the AO for verification and allowed the necessary deductions in accordance with the provisions of law.
|