Section 80JJAA deduction must follow the unamended employment condition for assessment year 2013-14, not the later 150-day threshold.

Section 80JJAA, as applicable to the year in question, had to be tested against the statutory employment condition in force for the relevant previous year, and the period could not be extended up to the return-filing date. The reduced 150-day threshold applied only from assessment year 2017-18, while the earlier provision continued to govern assessment years commencing on or before 1 April 2016. For assessment year 2013-14, the claim therefore had to be examined under the unamended requirement, and the deduction was remitted for fresh computation because the working of the allowed amount and treatment of earlier eligible workmen were not clear.

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Issues: Whether the assessee's claim for deduction under section 80JJAA had to be computed on the basis of the 300-day employment condition with reference to the previous year, and whether the later amended threshold of 150 days could be applied retrospectively to assessment year 2013-14.

Analysis: The deduction under section 80JJAA, as applicable to the year in question, was available only in respect of new regular workmen who satisfied the statutory conditions during the relevant previous year. The expression "previous year" could not be extended up to the date of filing of the return. The substituted provision with a reduced minimum employment period was introduced with effect from assessment year 2017-18, and the statute itself made clear that the earlier provision would continue to apply to assessment years commencing on or before 1 April 2016. The claim therefore had to be examined only under the unamended provision applicable to assessment year 2013-14. However, the exact quantum allowed by the Assessing Officer was not supported by the workings placed before the assessee, and it was unclear whether deduction for eligible workmen from earlier years had been properly considered.

Conclusion: The retrospective application of the amended 150-day condition was not accepted. The matter was sent back for fresh computation of the deduction under the applicable version of section 80JJAA.

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