| The Tax Publishers2019 TaxPub(DT) 5339 (Guj-HC) : (2020) 422 ITR 0554 : (2020) 317 CTR 0230 INCOME TAX ACT, 1961
Section 80JJA
Claim towards deduction under section 80JJA for assessment years 2004-05, 2005-06, 2006-07 and 2007-08 came to be allowed. It was with respect to fifth and the last assessment year 2008-09 that issue was raised by the department. When department thought fit to grant deduction for four consecutive years, there was no reason to raise any objection with regard to admissibility of such deduction under section 80JJA in the fifth and final assessment year 2008-09. Accordingly, appeal filed by revenue was dismissed.
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Deduction under section 80JJA - Allowability - Revenue seeking to deny deduction during fifth and final assessment year - No objection raised as regards admissibility of deduction during four consecutive years
Assessee claimed deduction under section 80JJA being admissible for a period of five years only from the previous year in which business commenced. AO took the view that assessee had commenced business in previous year 1999-2000 relevant to assessment year 2000-01 and accordingly, year under consideration was eighth year of claim of deduction under section 80JJA and, therefore, assessee was not entitled for deduction under section 80JJA for assessment year. Tribunal took into consideration the fact emerging from record that first year, in which, section 80JJA deduction was claimed, was assessment year 2004-05 and during the course of scrutiny assessment proceedings, AO had specifically called upon the assessee to show as to why deduction under section 80JJA was allowable during that year and no such deduction was claimed in earlier years. Tribunal further noted , in its order, that AO had duly accepted assessment year 2004-05 as the first year of claim. Considering the same, Tribunal took the view that concerned year was the fifth and final year. Revenue challenged order passed by Tribunal before High Court.Held: Claim towareds deduction undr section 80JJA for assessment years 2004-05, 2005-06, 2006-07 and 2007-08 came to be allowed. It was with respect to fifth and the last assessmeng year 2008-09 that issue was raised by the department. When department thought fit to grant deduction for four consecutive years, there was no reason to raise any objection with regard to admissibility of such deduction under section 80JJA in the fifth and final assessment year 2008-09. Accordingly, appeal filed by revenue was dismissed.
Relied:CIT v. Quality BPO Services Pvt. Ltd. Tax Appeal No. 439 of 2016, decided on 14-6-2016.
REFERRED :
FAVOUR : In assessee's favour.
A.Y. : 2008-09
IN THE GUJARAT HIGH COURT
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