Dismissing the appeal of the Revenue, the High Court held that the AY. 2005-06 was the first year in the block of ten consecutive AYs for claiming deduction under section 80IA(1) of the Act. Circular No. 1 of 2016 ([2016] 381 ITR (St.) 1) would be applicable to the facts of the case. The lower Authorities were not justified in applying section 80IA(5) so as to ignore the losses which had already lapsed by operation of section 79. SLP of Revenue was dismissed. (AY. 2005-06)
ACIT v. Vodafone Essar Gujarat Ltd. (2023) 453 ITR 755/149 taxmann.com 1 (SC) Editorial: Vodafone Essar Gujarat Ltd v. ACIT (2020) 424 ITR 498 (Guj)(HC) is affirmed.
S. 80IA : Industrial undertakings-Telecommunication Services Change in shareholding-Block of ten consecutive years-Losses which have lapsed cannot be taken into account for purposes profits of undertaking. [S. 79, 80IA(5)]