9911796707
|
Home
Forgot password New User/ Regiser ⇒ Register to get Live Demo
2024 (11) TMI 764 - AT - Income TaxIncome from lease rental eligible for deduction u/s 80HHC - HELD THAT - We are of the view that when a certain profit or gain has already been granted deduction under section 80-IA, to extent specified in first part of sub-section (9) of section 80-IA, claim of deduction under other provisions, including section 80HHC of the Act, would not be available for lease rental income in view of Section 80IA(9) of the Act. This also finds support from a concurrent reading of the orders of Ahmedabad Tribunal in the case of Madhusudhan Industries 2023 (6) TMI 726 - ITAT AHMEDABAD , the decision of Supreme Court in the case of E.I.H. Ltd. 2019 (2) TMI 2118 - SC ORDER - Accordingly, on this issue, we find no infirmity in the order of Ld. CIT(A) so as to call for any interference.
Issues Involved:
1. Eligibility of "lease rental" income for deduction under Section 80HHC of the Income Tax Act. 2. Simultaneous claim of deductions under Sections 80HHC and 80IA of the Income Tax Act. Issue-wise Detailed Analysis: 1. Eligibility of "Lease Rental" Income for Deduction under Section 80HHC: The primary issue addressed was whether the income derived from "lease rental" qualifies for deductions under Section 80HHC of the Income Tax Act. The assessee argued that the "lease rental" income should be considered as derived from business activity since it emanates from goods manufactured by the assessee. This argument was supported by a previous ruling in the assessee's own case for earlier assessment years, where the Tribunal allowed the deduction under Section 80HHC for "lease rental" income. The Tribunal concluded that the lease rental income is directly linked to the business activity of the assessee, as the leased goods were manufactured by the assessee itself. Thus, the lease rental income is considered as "derived from" the business activity, making it eligible for deduction under Section 80HHC. 2. Simultaneous Claim of Deductions under Sections 80HHC and 80IA: The second issue was whether deductions under both Sections 80HHC and 80IA can be claimed simultaneously on the same "lease rental" income. The CIT(A) had disallowed the deduction under Section 80HHC on the grounds that the same lease rental income had already been allowed for deduction under Section 80IA, invoking the provisions of Section 80IA(9), which restricts the claim of deduction under any other provisions if it has already been claimed under Section 80IA. The assessee relied on the case of ACIT v. IPCA Laboratories, arguing that deductions under Section 80HHC should be available without excluding deductions under Section 80IA. However, the Tribunal noted that the Supreme Court had referred a similar matter to a larger bench due to differing opinions, indicating that simultaneous deductions are not straightforwardly permissible. The Tribunal referenced various judgments, including those from the Gujarat High Court, which consistently held that Section 80IA(9) restricts the simultaneous claim of deductions. Consequently, the Tribunal upheld the CIT(A)'s decision that deductions under Section 80HHC are not available for "lease rental" income when deductions under Section 80IA have been claimed. Conclusion: The appeals were partly allowed. The Tribunal confirmed that "lease rental" income qualifies for deduction under Section 80HHC. However, it upheld the restriction on simultaneous deductions under Sections 80HHC and 80IA, in line with Section 80IA(9). The decision was based on consistent judicial precedents that emphasize the non-availability of dual deductions on the same income under these sections.
|
