https://www.taxtmi.com/caselaws?id=761785 ITAT Hyderabad allowed the assessee's appeal regarding deduction u/s 80-IA on retention money. The CIT(A) had disallowed the deduction, relying on McNally Bharat Engineering Co. Ltd case. However, ITAT held that Section 43CB, effective from 01.04.2017, clearly mandates inclusion of retention money in contract receipts for computing construction contract profits. Since retention money pertains to construction activities eligible for section 80-IA deduction and cannot have different characteristics than the principal contract amount, the assessee was entitled to the deduction. The CIT(A)'s order was deemed without merit. en-us Thu, 14 Nov 2024 00:00:00 +0530 Sat, 16 Nov 2024 08:38:48 +0530 TaxTMI RSS Generator https://www.taxtmi.com/caselaws?id=761785 ITAT Hyderabad allowed the assessee's appeal regarding deduction u/s 80-IA on retention money. The CIT(A) had disallowed the deduction, relying on McNally Bharat Engineering Co. Ltd case. However, ITAT held that Section 43CB, effective from 01.04.2017, clearly mandates inclusion of retention money in contract receipts for computing construction contract profits. Since retention money pertains to construction activities eligible for section 80-IA deduction and cannot have different characteristics than the principal contract amount, the assessee was entitled to the deduction. The CIT(A)'s order was deemed without merit. Case-Laws Income Tax Thu, 14 Nov 2024 00:00:00 +0530 https://www.taxtmi.com/caselaws?id=761785