The Tax PublishersTax Case (Appeal) No. 596 of 2008
2019 TaxPub(DT) 5195 (Mad-HC)INCOME TAX ACT, 1961,
Section 80-IA
Where assessee claimed deduction in respect of income arising from installation, AMC, technical charges, consultation charges and licence fee, but the income was not derived from industrial undertaking, as men, material and machinery of the industrial undertaking were not used to earn income, thus, deduction under section 80-IA was rightly denied.
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Deduction under section 80-IA - Income arising from installation, AMC, etc. - Income not derived from industrial undertaking - Allowability
Assessee claimed deduction under section 80-IA in respect of income arising from installation, AMC (Annual Maintenance Charges of ATM), technical charges, consultation charges and licence fee. AO disallowed the deduction on the ground that the income was not derived from industrial undertaking, which was confirmed by CIT(A) as well as Tribunal. Held: The AO after examining the facts of the case, found that the income earned from the AMC charges, installation and technical charges, consultation charges and licence fee of software did not constitute income from the industrial undertaking, which was established in Pondicherry. Since this was not derived from the industrial undertaking, as the men, material and machinery of the Pondicherry industrial undertaking were not used to earn income. Therefore, deduction under section 80-IA was rightly denied
REFERRED :
FAVOUR : Against the assessee
A.Y. : 2001-02
INCOME TAX ACT, 1961,
Section 37(1)
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