INCOME TAX ACT, 1961,

Section 80-IA

Deduction under section 80-IA - Income arising from installation, AMC, etc. - Eligibility for deduction under section 80-IA -

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 issue was decided against the assessee in assessee's own case, i.e., in M/S. Diebold Systems (P) Ltd. v. Asstt. CIT (Tax Case (Appeal) No. 596 of 2008, dt. 24-6-2019), wherein the assessee was not able to establish its claim before the AO by producing records. The AO after examining the facts of the case, found that the income earned from AMC (Annual Maintenance Charges of ATM), installation and technical charges, consultation charges and licence fee of software did not constitute income from the industrial undertaking, since this was not derived from the industrial undertaking, as the men, material and machinery of the industrial undertaking were not used to earn income and therefore, denied deduction under section 80-IA. Thus, following the decision, the issue of denial of deduction under section 80-IA was also answered against the assessee.

REFERRED :

FAVOUR : Against the assessee

A.Y. : 1999-2000

INCOME TAX ACT, 1961,

Section 147

SUBSCRIBE FOR FULL CONTENT