Commissioner of Income-tax Vs Reliance Energy Limited
Date-28th April, 2021
Forum-Supreme Court of India
Sub-Whether deduction u/s80-IA has to be limited to the extent of the Income from Business or profession as per Section 80AB or it has to be allowed to the extent of the profit of the eligible undertaking

The apex court in the above case was dealing with a situation where the amount of deduction u/s 80IA was more than the amount of income from business or profession which was included in the Gross total income and as such the revenue contended that following Section 80AB the deduction was to be restricted to the amount of income of the nature of business or profession which was included in the Gross total income. However the Apex court upon reading of Section 80IA(5), its own judgement in the case of Synco Industries , Canara workshop Private limited dismissed the appeal of the department.

This judgement will help lot of corporates who are facing similar issues.

Ramesh Patodia
29-04-2021