2019 (11) TMI 1768 - AT - Income Tax

Deduction u/s 80JJAA - Allowance of deduction for earlier previous years other than the one relevant to the assessment year - HELD THAT - This Tribunal for assessment year 2007-08 2015 (7) TMI 1117 - ITAT BANGALORE held that once new workmen is employed in previous year and works for 300 days in that year additional wages paid to him is to be allowed as deduction at 30% of such additional wages to him in that year and the same should be allowed as deduction for three assessment years and that such workmen need not be employed for subsequent period to claim deduction under section 80JJAA of the Act. It was held that once deduction is allowed in first year then 30% of such additional wages is to be allowed as deduction in each of subsequent two years. However for assessment years 2005-06 and 2006-07 2016 (12) TMI 1887 - ITAT BANGALORE and for assessment year 2010-11 2016 (7) TMI 1012 - ITAT BANGALORE remanded the issue to Ld.AO for fresh consideration - Since the later orders on identical issues were remanded by this Tribunal to Ld.AO for fresh consideration we deem it fit to restore this issue to Ld.AO for fresh consideration in accordance with law as applicable during relevant period.

Summary

Issues:
1. Appeal against order passed by Ld. CIT (A)-5, Bangalore for assessment year 2011-12.
2. Disallowance of deduction claimed under section 80JJAA.

Analysis:

Issue 1:
The appeal was filed by the revenue against the order passed by Ld. CIT (A)-5, Bangalore for the assessment year 2011-12. The Ld.AO completed the assessment under section 143 (3) read with section 144C of the Act, determining the total income. Disallowances were made by the Ld.AO pertaining to section 14A and deduction disallowed under section 80JJAA of the Act. The Ld.AO disallowed the deduction under section 80JJAA by holding that the deduction claimed by the assessee in respect of the employment of new workmen during the previous year was not provided for in the provisions. The Ld.AO disallowed the excess deduction claimed in computation amounting to Rs.3,14,48,959.

Issue 2:
The only issue alleged by the revenue was in respect of the deduction allowed under section 80JJAA of the Act by Ld.CIT (A). The Ld.AR placed reliance on the Tribunal order in the assessee's own case for various assessment years. The Tribunal held that once a new workman is employed in the previous year and works for 300 days in that year, additional wages paid to him should be allowed as a deduction at 30% of such additional wages for three assessment years. However, for certain assessment years, the issue was remanded to the Ld.AO for fresh consideration. The Tribunal deemed it fit to restore the issue to the Ld.AO for fresh consideration in accordance with the law applicable during the relevant period. The Ld. CIT DR did not object, and accordingly, the ground raised by the revenue was allowed for statistical purposes.

In conclusion, the appeal filed by the revenue was allowed for statistical purposes, and the issue regarding the deduction claimed under section 80JJAA was remanded to the Ld.AO for fresh consideration in line with the applicable law during the relevant period.