TMI Blog2019 (4) TMI 2120X X X X Extracts X X X X X X X X Extracts X X X X ..... c.80JJAA as it stood at the relevant point of time alone are applicable for determining the quantum of deduction. Hence the provisions of sec.80JJAA as applicable to AY 2013-14, which was extracted alone should be considered for examining the claim of the assessee. We find force with the submission of the assessee. In our view, the AO should have confronted the workings made by him. Since the same was not furnished, it was also not clear as to whether the AO has allowed deduction on the wages paid to new regular workmen employed in the earlier two years. Since all these aspects require examination, we restore this issue to the file of the AO for determining the correct quantum of deduction in the light of discussions made supra. We also ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... eing an Indian company, includes any profits and gains derived from any industrial undertaking engaged in the manufacture or production of article or thing, there shall, subject to the conditions specified in sub-section (2), be allowed a deduction of an amount equal to thirty per cent. of additional wages paid to the new regular workmen employed by the assessee during the previous year. (2) No deduction under sub-section (1) shall be allowed (a) if the industrial undertaking is formed by splitting up or reconstruction of an existing undertaking or amalgamation with another industrial undertaking; (b) unless the assessee furnishes alongwith the return of income the report of the accountant, as defined in the Explanation b ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... d that the objective of prescribing the period of 300 days in the definition of regular workman given under the Section is only to exclude temporary workman . Accordingly it was submitted that if a workman is appointed on permanent basis, the deduction u/s 80JJAA of the Act should be allowed even if he has not completed 300 days during the previous year but have achieved the timeline in the immediately following the year before the due date for filing return of income, i.e., salary paid to employees who have completed 300 days prior to the date of filing of return of income should be considered as eligible for deduction u/s 80JJAA of the Act. In this regard, the assessee placed its reliance on the decision rendered by the Hon ble Supreme ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... nt under the special provisions of Sec. 80JJAA of the Act, and accordingly, the grounds of appeal 2-10 are rejected . 7. We noticed that the provisions of Sec. 80JJAA of the Act have been interpreted by the Coordinate Bench in the case of Bosch Ltd., (supra) as under: 23. In our considered opinion, as per provisions of Sec. 80JJAA as reproduced above, the deduction is allowable for three years including the year in which the employment is provided. Hence, in each of such three years it has to be seen that the workmen was employed for at least 300 days during that previous year and that such work men was not a causal workmen or workmen employed through contract labour. Therefore, if some work men were employed for a period less tha ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... his view, as the reference to the period of employment is in respect of employment during the previous year . The expression previous year has been defined in sec.2(34) r.w.s. 3 of the Act. According to section 3 of the Act previous year means the financial year immediately preceding the assessment year. Hence the period cannot be extended beyond the financial year, as contended by Ld A.R. 10. We noticed earlier that Section 80JJAA of the Act has undergone many changes. The section applicable to the year under consideration was inserted by Finance (No.2) Act, 1998 w.e.f. 1.4.1999. It was amended by Finance Act, 2013 w.e.f. 1.4.2014 and again by Finance Act, 2015 w.e.f. 1.4.2016. It was substituted by a new section by Finance Act,201 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... :- (3) The provisions of this section, as they stood immediately prior to their amendment by the Finance Act, 2016, shall apply to an assessee eligible to claim any deduction for any assessment year commencing on or before the 1st day of April, 2016. In our view, the Legislature has made its intention clear in sub.sec.(3) of substituted sec.80JJAA, which is made applicable from AY 2017-18. Hence the provisions of sec.80JJAA as it stood at the relevant point of time alone are applicable for determining the quantum of deduction. Hence the provisions of sec.80JJAA as applicable to AY 2013-14, which was extracted in the earlier paragraphs, alone should be considered for examining the claim of the assessee. 14. The Ld A.R submitted ..... X X X X Extracts X X X X X X X X Extracts X X X X
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