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TMI Blog2023 (7) TMI 853X X X X Extracts X X X X X X X X Extracts X X X X ..... Income Tax Act, 1961 (hereinafter referred to as 'the Act') relating to the Assessment Years (A.Ys) 2018-19 and 2019-20. 2. Since common issue of disallowance of deduction u/s. 80IE of the Act is involved in both the appeals, the same are disposed of by this common order. ITA No. 34/Ahd/2023 relating to the Assessment Year 2018-19 is taken as the lead case. 2.1. Brief facts of the case is that the assessee is a company filed its Return of Income for the Assessment Year 2018-19 on 27-10- 2018 declaring Nil total income under normal provisions of the Act and Rs. 31,84,06,25,409/- under the provisions of Minimum Alternate Tax. The Return of Income was processed u/s. 143(1) of the Act on 05-01-2020, wherein the CPC made the following adjustm ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... hereby claimed that the deduction u/s. 80IE of the Act should be allowed on the amount of Gross Total Income and not up to the amount of Income from Business or Profession. 5. The Ld. CIT(A) considered the above submission of the assessee and deleted the disallowance made by CPC following Supreme Court Judgment in the case of Reliance Energy Ltd. observing as follows: "...Since, the same logic had been applied to restrict the deduction in sec.80IE therefore, the same will also not stand. Thus, the addition cannot be sustained. Further, the assessing officer during the assessment proceeding u/s 143(3) for the A. Y. 2018-19 has made the following observation in para no. 9 at page no. 22 of the assessment order u/s 143(3) of the Act dated 2 ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... in law and on facts in deleting the disallowance of deduction u/s 80IE of the Act of Rs. 13,97,31,310/- without considering the facts of this case. As per the decision relied upon by the Ld.CIT(A) in the case of CIT Vs. Reliance Energy Ltd. (Civil Appeal No.1327 of 2021), is not applicable on the facts and law because Sec. 80IE specifically mentions about Where the gross total income of an assessee includes any profits and gains derived by un undertaking, to which this section applies, from any business referred to in sub-section (2), there shall be allowed, in computing the total income of the assessee, a deduction of an amount equal to hundred per cent of the profits and gains derived from such business for ten consecutive assessment ye ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... about Section 80-IA(5) by the Appellate Authority, nor the Tribunal and the High Court. However, we have considered the submissions on behalf of the Revenue as it has a bearing on the interpretation of sub-section (1) of Section 80-IA of the Act. We hold that the scope of sub-section (5) of Section 80-IA of the Act is limited to determination of quantum of deduction under sub-section (1) of Section 80-IA of the Act by treating 'eligible business' as the 'only source of income'. Sub-section (5) cannot be pressed into service for reading a limitation of the deduction under sub-section (1) only to 'business income'. An attempt was made by the learned Senior Counsel for the Revenue to rely on the phrase 'derived... f ..... X X X X Extracts X X X X X X X X Extracts X X X X
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