For the AY\u00a02015-16, the A.O. denied the assessee the benefit of deduction u\/s. 80-IC of the Act on the ground that the assessee had filed its return of income beyond time prescribed u\/s. 139(1) of the Act. Deduction u\/s. 80-IC of the Act was denied in respect of (1) interest earned from fixed deposits kept (a) in four entities on account of power and electricity connection taken to run the factory, (b) for guarantee given to the Uttarakhand Environment Protection and Pollution Control Board to get permission to run the plant, (c) for opening a letter of credit for import of goods\u00a0 and (2) interest recovered from customers for credit term allowed against letter of credit and bills were discounted on which interest were also paid. The CIT(A) affirmed the order passed by the A.O. On appeal, the Tribunal held that the assessee was entitled to claim deduction u\/s. 80-IC of the Act in respect of the amount of interest was derived from eligible business and was eligible for deduction u\/s.\u00a080-IC\u00a0of the Act. However, the sum of Rs. 54,680 being interest received on insurance claim could not be held derived from eligible business thus the sum was to be reduced for the claim u\/s.\u00a080-IC\u00a0of the Act.\u00a0 The Tribunal also held that the assessee had filed the audit report in form 10CCB and tax audit report in form 3CB\/3CD within prescribed due date but filed the return claiming deduction u\/s.\u00a080-IC\u00a0of the Act belatedly. Therefore, even though the return was filed beyond the prescribed time-limit provided under section\u00a0139(1)\u00a0of the Act, the assessee was entitled to claim deduction u\/s.\u00a080IC\u00a0of the Act. (AY. 2015-16)<\/p>\n","protected":false},"excerpt":{"rendered":"
S. 80IC: Special category States-Interest from fixed deposits in entities on account of power and electricity connection-Interest derived from eligible business and eligible for deduction-Interest received on insurance claim not derived from eligible business and not eligible for deduction. Condition precedent-Audit report in form 10CCB and tax audit report in form 3CB\/3CD filed within prescribed due date but return claiming deduction filed belatedly-Assessee entitled to deduction.[S. 139(1) Form,10CCB] <\/p>\n","protected":false},"author":3,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_acf_changed":false,"jetpack_post_was_ever_published":false,"_jetpack_newsletter_access":"","_jetpack_dont_email_post_to_subs":false,"_jetpack_newsletter_tier_id":0,"_jetpack_memberships_contains_paywalled_content":false,"_jetpack_memberships_contains_paid_content":false,"footnotes":""},"categories":[21],"tags":[],"class_list":["post-42035","post","type-post","status-publish","format-standard","hentry","category-income-tax-act"],"acf":[],"jetpack_featured_media_url":"","jetpack_shortlink":"https:\/\/wp.me\/p9S2Rw-aVZ","jetpack-related-posts":[],"jetpack_sharing_enabled":true,"_links":{"self":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/42035","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/users\/3"}],"replies":[{"embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/comments?post=42035"}],"version-history":[{"count":1,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/42035\/revisions"}],"predecessor-version":[{"id":42036,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/posts\/42035\/revisions\/42036"}],"wp:attachment":[{"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/media?parent=42035"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/categories?post=42035"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/itatonline.org\/digest\/wp-json\/wp\/v2\/tags?post=42035"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}