Tribunal allows appellant's claim under section 80JJA for assessment year 2008-09. Disallowed amount of Rs. 64,04,327 to be deleted.

The Tribunal allowed the appeal, stating that the appellant's claim under section 80JJA for the assessment year 2008-09 was valid. The Tribunal found the disallowance of the claim of Rs. 64,04,327 under section 80JJA to be devoid of legally sustainable merits and directed the Assessing Officer to delete the disallowed amount.

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Issues:
Challenge to correctness of order dated 29th December, 2014 passed by CIT(A)-2, Ahmedabad regarding assessment under section 143(3) r.w.s. 147 of the Income-tax Act, 1961 for the assessment year 2008-09.

Analysis:
The appellant challenged the disallowance of claim of Rs. 64,04,327/- under section 80JJA of the Income-tax Act, 1961. The Assessing Officer proposed to disallow the deduction as the appellant claimed it well beyond the permissible five years, despite commencing business in the relevant period. The CIT(A) confirmed the disallowance, stating that the appellant was producing enzymes since A.Y. 2000-2001 and changing the manufacturing process in 2003 did not alter the nature of the product. The CIT(A) held that the deduction under section 80JJA was available from A.Y. 2000-2001, not from 2004-05 as claimed by the appellant. The Tribunal noted that the first year the deduction was claimed was 2004-05, accepted by the Assessing Officer, making the current year's claim the fifth and final year. The Tribunal found the disallowance devoid of legally sustainable merits and directed the Assessing Officer to delete the disallowed claim of Rs. 64,04,327 under section 80JJA.

Conclusion:
The Tribunal allowed the appeal, emphasizing that the appellant's claim under section 80JJA for the assessment year 2008-09 was valid as the first claim was made in 2004-05, which was accepted by the Assessing Officer. The Tribunal held that the disallowance lacked legally sustainable merits and ordered the deletion of the disallowed claim amounting to Rs. 64,04,327.

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