Deduction u/s 80IB(11A) for fruits and vegetables was first inserted from A.Y. 2005-06. The Section allows deduction for 10 Assessment Years (100%in first 5 years and thereafter @ 25%) beginning from the INITIAL ASSESSMENT YEAR. As per Section 80IB(14)(iv) Initial Assessment year is the year in which the Undertaking commences operations.
Now, the interesting question is: -
An Undertaking commences operations from A.Y. 2002-03. But as the Deduction was first introduced from A.Y. 2005-06, in A.Y. 2008-09, the Undertaking claimed Deduction @ 100% considering the A.Y. 2008-09 as the 4th Year as the Initial Year was considered to be the year in which the Deduction was first introduced i.e. A.Y. 2005-06.
The Assessing Officer (AO) considered A.Y. 2002-03 as the Initial Assessment Year as per Section 80IB(14)(iv) and restricted the Deduction to 25% as A.Y. 2008-09 was the 7th year.
Suggestions are invited as to What will be the Initial Assessment Year in the present case i.e. A.Y. 2002-03 (the year when there was no such provision in existence) OR A.Y. 2005-06 (when the Deduction was first introduced.)
Now, the interesting question is: -
An Undertaking commences operations from A.Y. 2002-03. But as the Deduction was first introduced from A.Y. 2005-06, in A.Y. 2008-09, the Undertaking claimed Deduction @ 100% considering the A.Y. 2008-09 as the 4th Year as the Initial Year was considered to be the year in which the Deduction was first introduced i.e. A.Y. 2005-06.
The Assessing Officer (AO) considered A.Y. 2002-03 as the Initial Assessment Year as per Section 80IB(14)(iv) and restricted the Deduction to 25% as A.Y. 2008-09 was the 7th year.
Suggestions are invited as to What will be the Initial Assessment Year in the present case i.e. A.Y. 2002-03 (the year when there was no such provision in existence) OR A.Y. 2005-06 (when the Deduction was first introduced.)