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TMI Blog2019 (4) TMI 2120X X X X Extracts X X X X X X X X Extracts X X X X ..... . The assessee is engaged in the business of manufacture of garments. The assessee claimed the deduction u/s 80JJAA of the Act to the tune of Rs. 72.86 lakhs. The A.O, however, restricted the deduction to Rs. 4.50 lakhs and accordingly disallowed the deduction to the tune of Rs. 68.35 lakhs. The Ld. CIT(A) confirmed the order passed by the A.O and hence the assessee has filed this appeal before us. 3. The controversy revolves around the interpretation of Sec. 80JJAA of the Act as it existed at the relevant point of time. This section has been amended several time and hence, for the sake of convenience, we extract below Sec. 80JJAA of the Act applicable to the year under consideration: '80JJAA. (1) Where the gross total income of an asses ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... r a period of less than three hundred days during the previous year; (iii) "wages" means the minimum rate of wages fixed under section 3 of the Minimum Wages Act, 1948; (iv) "workman" shall have the meaning assigned to it in clause (s) of section (2) of the Industrial Disputes Act, 1947.'. 4. It can be noticed that the definition of "regular workman" given under Explanation to Sec. 80JJAA of the Act excludes workman employed for a period of less than 300 days during the previous year. The A.O noticed that only 24 workman has completed 300 days of employment during the year under consideration and accordingly restricted the deduction to Rs. 4.50 lakhs. 5. Before Ld. CIT(A) the assessee submitted that the objective of prescribing the pe ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... s provided. Hence, in each of such three years it has to be seen that the workmen was employed for at least 300 days during the previous year and that such work men was not a casual workmen or workmen employed through contract labour. Therefore, if some work men were employed for a period less than 300 days in the previous year then no deduction is allowable in respect of payment of wage to such workmen in the present year even if such work men was employed in the preceding year for more than 300 days but in the present year, such work men was not employed for 300 days or more. In view, of the above, I am of the view that the Assessing Officer is justified in restricting the claim of the appellant under the special provisions of Sec. 80JJAA ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ment year is the third year. Similarly, the assessee shall be eligible for deduction in respect of wages paid to new regular workmen employed in the financial year relevant to assessment year 2012-13, as the present assessment year is the second year. Hence the assessee should be eligible for deduction u/s 80JJAA of the Act in respect of eligible regular workmen employed in Financial years relevant to AY 2011-12, 2012-13 and 2014-15, provided they continue to qualify under the definition of "regular workman" during this year also. 9. The Ld A.R submitted that the period of 300 days should be computed by considering the date of filing of return of income. We are unable to agree with his view, as the reference to the period of employment is ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... m employment should be taken as 150 days for the assessee, as it is engaged in the business of manufacturing of apparels. In this regard, he placed his reliance on the decision rendered by Hon'ble Supreme Court in the case of Vatika Township Private Limited (2014)(367 ITR 466). He also submitted that such kind of clarificatory amendments have been held to be retrospective in the case of Bhagwan Dass Khanna Enterprises (P) Ltd vs. ACIT (2001)(78 ITD 151) in the context of section 80HHD of the Act, which provision also falls in Chapter VI-A, as section 80JJAA. 13. We are unable to agree with the contentions of Ld A.R. The subsection (3) of substituted sec.80JJAA reads as under:- "(3) The provisions of this section, as they stood immediatel ..... X X X X Extracts X X X X X X X X Extracts X X X X
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