9911796707
TMI Blog2023 (7) TMI 853X X X X Extracts X X X X X X X X Extracts X X X X ..... T(A) order and the regular assessment passed u/s. 143(3) AO followed the Hon ble Supreme Court judgment in the case of Reliance Energy Ltd. and granted deduction under 80IE on the Gross Total Income of the Assessee. Decided against revenue. - ITA Nos. 34 And 35/Ahd/2023 - - - Dated:- 19-7-2023 - Smt. Annapurna Gupta, Accountant Member And Shri T.R. Senthil Kumar, Judicial Member For the Assessee : Shri Biren Shah, A.R. For the Revenue : Shri Akhilendra Pratap Yadaw , CIT-DR ORDER PER : T.R. SENTHIL KUMAR, JUDICIAL MEMBER:- These two appeals are filed by the Revenue as against separate Appellate orders both dated 18.11.2022 passed by the Commissioner of Income Tax (Appeals), National Faceless Appeal Centre, Delh ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... includes any profits and gains derived by an undertaking on the eligible business prescribed in sub-section (2) of Section 80IE of the Act. Thus the assessee claimed the issue is squarely covered by the recent Judgment of the Hon ble Supreme Court of India in the case of CIT Vs. Reliance Energy Ltd. reported in 127 taxmann.com 69 (SC) where it is held that Scope of subsection (5) of section 80IA is limited to determination of quantum of deduction under sub-section (1) of section 80IA by treating eligible business as only source of income . Sub-section (5) cannot be pressed into service for reading a limitation of deduction under sub-section (1) only to business income . 4.1. The assessee further relied upon Hon ble Bombay High Court ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ated 26.04.2021 and 29.04.2021 and the same has been considered. The assessee relied on the judgement of the Hon'ble Supreme Court dated 28.04.2021 in the case of Commissioner of Income tax Vs M/s Reliance Energy Ltd, where the Hon'ble Supreme Court laid down that for the purpose of computation of deduction under the section, eligible business as a whole is to be treated as source of income and cannot be restricted to business income. Accordingly, the deduction u/s 80- IE is recomputed to Rs. 254,39,59,717/- and reduced from Gross total income to arrive at Total assessed Income . In nutshell, the appeal of the assessee on this ground is allowed. 6. Aggrieved against the same, the Revenue is in appeal before us raising the ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... ase of Reliance Energy Ltd. (cited supra) which has been duly followed by the Assessing Officer while completing the regular assessment u/s. 143(3) for the very same assessment year 2018-19 and thereby allowed the deduction u/s. 80IE on the Gross Total Income of the assessee. Therefore the Revenue appeals are liable to be dismissed. 9. We have given our thoughtful consideration and perused the materials available on record. The recent supreme court judgment in the case of Reliance Energy has held that the scope of sub-sec(5) of 80IA is limited to determination of quantum deduction under sub sec.(1) of sec. 80IA by treating eligible business as the only source of income and sub-section (5) cannot be pressed into service for reading a limi ..... X X X X Extracts X X X X X X X X Extracts X X X X ..... e Court judgment in the case of Reliance Energy Ltd. and granted deduction under 80IE on the Gross Total Income of the Assessee. Therefore the grounds raised by the Revenue is devoid of merit and the same is liable to be rejected. 10. In the result, the appeal filed by the Revenue is hereby dismissed. 11. ITA No. 35/Ahd/2023 is relating to the Assessment Year 2019-20, wherein the claim of deduction u/s. 80IE was restricted while processing the return u/s. 143(1) of the Act. There is no change in facts of the above case with that of the earlier assessment year. For the detailed reasons stated in Para 9 9.1 of the above order, therefore the above decisions is squarely applicable to the present facts of this case. Following the ratio o ..... X X X X Extracts X X X X X X X X Extracts X X X X
|
