Section 80J deduction can be carried forward without a formal prior-year claim when eligibility is otherwise established.

Section 80J relief was treated as available even where no formal claim had been made in the earlier assessment year, provided the undertaking's eligibility and loss position were otherwise verified. The Tribunal noted that the provision is an incentive measure and does not require a claim in the relevant year as a condition precedent to carry forward the deduction. On that basis, omission to consider the claim earlier was treated as a mistake apparent from the record, and rectification under section 154 was upheld. The departmental challenge therefore failed, and allowance of the deduction was sustained.

---

---

Issues: Whether deduction under section 80J for the earlier assessment year, though not claimed in that year, could be allowed in the subsequent assessment year and treated as a mistake apparent from the record for rectification under section 154.

Analysis: The assessee had not claimed the section 80J deduction for the earlier year, but the undertaking's loss for that year had been accepted and the conditions for the relief had been verified in the later assessment. The Tribunal accepted that section 80J contains no requirement that a formal claim must be made in the relevant year before the deduction can be carried forward. The provision was treated as an incentive measure intended to grant relief and permit carry forward for the prescribed period, and the omission to consider the claim in the earlier year was held to be rectifiable.

Conclusion: The claim for deduction under section 80J for the earlier year was rightly allowed, and the rectification under section 154 was valid.

Final Conclusion: The Department's appeal failed and the order directing allowance of the deduction was sustained.

Ratio Decidendi: Section 80J does not require a formal claim in the relevant assessment year as a precondition for allowing the deduction to be carried forward, where the underlying loss and eligibility are otherwise established.

---