9911796707
TMI Blog2018 (8) TMI 1868X X X X Extracts X X X X X X X X Extracts X X X X ..... (A)-2, Ahmedabad has erred in confirming disallowance of claim of Rs. 64,04,327/- u/s 80JJA of the Income-tax Act, 1961. 1.2 That various reasons advanced by Learned CIT(A)-2, Ahmedabad are contrary to the facts of the case. 1.3 Therefore disallowance confirmed by Learned CIT(A)-2, Ahmedabad should be deleted." 3. The issue in appeal lies in a narrow compass of material facts. During the course of present assessment proceedings, the Assessing Officer noted that, while the assessee had commenced the business in the period relevant to the assessment year 2000-01, the assessee had claimed deduction under section 80JJA in the present assessment year - well beyond the permissible five years. Accordingly, he proposed to disallow ded ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... the same. The claim of the appellant that since it had employed new process from 2003, this year should be treated as first-year of production, cannot be accepted as the appellant was producing 'enzyme' earlier as well as it is producing 'enzyme' now. The deduction is available in section 80JJA tor processing or treatment of biodegradable waste for generating power or producing bio fertilisers, biopesticides or other biological agents etc. The appellant falls in the category of producer of biological agents and therefore, the deduction has been claimed. The appellant is rightly entitled for the deduction as it clearly falls in the definition of section 80JJA but the year of production has to be taken from A.Y.2000-2001, as the a ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... sment proceedings, the Assessing Officer had specifically asked the assessee to "show cause deduction of section 80JJA is allowable during the year under consideration as no such deduction was claimed in the earlier years". The claim was explained at length and the Assessing Officer duly accepted it as the first year of claim. By this basis, the current year's claim is fifth and final year. There is no infirmity in the claim thus. The mere fact that the assessee was involved in somewhat similar activity is not really relevant inasmuch as the character of activity was materially distinct from assessment year 2004-05 and that aspect of the matter, by the Assessing Officer having accepted it as first year of claim, has reached finality. In vie ..... X X X X Extracts X X X X X X X X Extracts X X X X
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