Deduction u/s 80K claming deduction u/s 80J. - Income Tax - 227/CBDT

INSTRUCTION NO. 227/CBDT Dated: October 6, 1970 Section(s) Referred: 80K Statute: Income - Tax Act, 1961 Question has arisen whether a shareholder would be entitled to get the benefits of section 80 K of the I.T.Act in a case where the company has not actually obtained the deduction u/s.80 J of the Act due to lack of profits and the deficiency in full has been carried forward for setting off against future profits u/s.80 J(3) of the act. 2. The board are of the view that a shareholder will be entitled to the benefit u/s.80 K of the Act if the company is entitled to a deduction u/s.80J irrespective of the fact whether or not such a deduction was actually allowed or could not be allowed owing to inadequacy of profits. The shareholders will not however be entitled to any further deduction when the carried forward deficiency is actually allowed in the hands of the company.