SC referred a split decision regarding deductions under Sections ...

Supreme Court Clarifies Tax Deduction Limits: Section 80IA(9) Caps Aggregate Deductions at 100% of Business Profits

May 23, 2025

Case Laws Income Tax SC

SC referred a split decision regarding deductions under Sections 80HHC and 80IA to a three-judge bench. The court interpreted Section 80IA(9) as restricting the aggregate deductions under heading C of Chapter VI-A to 100% of business profits, without affecting the computation of individual deductions. The provision aims to prevent taxpayers from claiming repeated deductions on the same eligible income. The court endorsed the Bombay HC's interpretation that the restriction applies to deduction allowability rather than gross income computation, ensuring that total deductions do not exceed the eligible business profits.

View Source

← Previous Next →

SC referred a split decision regarding deductions under Sections ...

Supreme Court Clarifies Tax Deduction Limits: Section 80IA(9) Caps Aggregate Deductions at 100% of Business Profits

May 23, 2025

Case Laws Income Tax SC

You may also like:

Deduction u/s.80IC on the profits - gross total income - Going with the prescription of section 80A(2) of the Act, if the gross total income is more than the aggregate...

Deduction u/s 80IC - Since in the present case the fact that the assessee had undertaken substantial expansion is not disputed, the assessee, we hold, is entitled to...

Deduction u/s 80IC - if substantial expansion is undertaken, say, in 8th year by an assessee such an assessee would be entitled to 100% deduction for the first five...

Deduction u/s 36(1) (viia) - section 36(1) (viia) clearly provides for deduction of 7.5 % of the total income and a further deduction of 10 % of the aggregate of...

Deduction u/s.80IB(9) - Disallowance on aborted blocks - the deduction u/s 80IB(9) has to be computed after ascertaining profits and gains of eligible business in terms...

Computation of deduction u/s 80IB(9) - there is no scope to adjust expenses relating to other “undertakings” while computing deduction u/s 80IB(9) of the Act.

Deduction u/s 80IC - substantial expansion after claim 100% deduction - AO allowed the claim of 30% as against 100% claimed by the assessee - following the decision of...

Short deduction of TDS upto ₹ 100 will be ignored

Deduction u/s 80IC - @ 25 % OR 100% - Claim during the 7th year - even when an old unit completes substantial expansion, such a unit also becomes entitled to avail the...

Deduction u/s 54F - LTCG - Out of these 24 flats, 15 flats are already sold in the present year and remaining 9 flats are likely to be sold within the period of three...

Deduction u/s 80-IC - assessee is entitled to only 25% of deduction during the present year because the assessee has already availed the period of full deduction @ 100%...

Deduction u/s 80-I - denial of deduction u/s 80-I(9) - Close relations between the assessee - company and the foreign buyer - burden of proof - Deduction u/s 10A read...

The Income Tax Appellate Tribunal (ITAT) upheld the Commissioner of Income Tax (Appeals) [CIT(A)] order allowing deduction u/s 54EC for investments made in Rural...

Deduction u/s 80IC - substantial expansion - in terms of the provisions of the section no claim of deduction @ 100% of profits beyond the stipulated period of five years...

Computation of deduction u/s 10B - 100% EOU - inter unit transfer should not be treated as part of the “Total Turnover” while computing deduction u/s.10B of the Act - AT

Quick Updates: