INCOME TAX ACT, 1961

Section 80-IA

Deduction under section 80-IA - Initial assessment year - Assessee considered 4th year of operation as initial assessment year -

Question, for consideration was whether assesse was entitled to consider the 'fourth year' of operation as the initial assessment year for computation of deduction under section 80-IA. Held: It is abundantly clear from sub-section (2) that an assessee, who is eligible to claim deduction under section 80-IA, has the option to choose the initial/first year from which it may desire to claim deduction for ten consecutive years, out of a slab of fifteen (or twenty) years, as prescribed under that sub-section. Accordingly, assessee was entitled to claim deduction from the assessment year 2009-10 as the 'initial assessment year' under section 80-IA(5) even though this was the fourth year of operation of activities under section 80-IA as 'initial assessment year' for 'claim of deduction' need not be the' first year' of the 'commencement of operations' of assessee.

REFERRED :

FAVOUR : In assessee's favour.

A.Y. :

INCOME TAX ACT, 1961

Section 80-IA

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