TaxTMI 
TaxTMI 
2016 (8) TMI 270
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....ion) in ITA No. 478/2016 CM No. 27277/2016 (for exemption) in ITA No. 479/2016 CM No. 27279/2016 (for exemption) in ITA No. 481/2016 CM No. 27280/2016 (for exemption) in ITA No. 482/2016 CM No. 27281/2016 (for exemption) in ITA No. 483/2016 CM No. 27291/2016 (for exemption) in ITA No. 490/2016 1. Allowed, subject to all just exceptions. CM No. 27276/2016 (for condonation of delay of 38 days in filing the appeal) in ITA No. 478/2016 2. For the reasons stated in the application, the delay in filing the appeal is condoned. 3. The application is disposed of. ITA No. 476-479/2016, ITA No. 481-483/2016 & ITA No. 490/2016 4. The challenge in these appeals is to the order dated 23rd December 2015 and the common orde....
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...." do not occur in sub-section (2A) of Section 80 IA. According to the Revenue, the ITAT erred in reading the sub-section (2A) in isolation, and thereby carved out a separate scheme with regard to the nature and extent of deduction for undertaking engaged in providing telecommunication services. 7. Section 80IA (1), (2) and (2A) of the Act read as under: "80 IA: Deductions in respect of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, etc.- (1) Where the gross total income of an assessee includes any profits and gains derived by an undertaking or an enterprise from any business referred to in sub-section (4) (such business being hereinafter referred to as the eligible b....
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....ces, specified in clause (ii) of sub-section (4), shall be hundred per cent of the profits and gains of the eligible business for the first five assessment years commencing at any time during the periods as specified in sub-section (2) and thereafter, thirty per cent of such profits and gains for further five assessment years." 8. The question arose in the context of the Assessee being asked to explain why certain specific items categorized as 'other income' and 'extra-ordinary item' in the Profit and Loss Account in assessment year 2004-05 should not be excluded from the profit and gains of the Assessee. According to the Revenue, these items could not be considered as profits and gains 'derived from' the eligible....
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....for sub-section (2A) a wording different from that appearing in sub section (1). Under Section 80IA (1), what is available for deduction are profits and gains "derived by an undertaking or an enterprise from any business referred to in sub-section (4)" whereas in Section 80-IA (2A) what is available for deduction is "hundred percent of the profits and gains of the eligible business". The following conclusion reached by the ITAT in para 13.11 of the impugned order correctly encapsulates the legal position as far as the interpretation of Section 80IA (2A) is concerned. "13.11 Thus, we find that the legislature being alive to providing tax deductions to business enterprises and undertakings, it wanted to curtail the time line du....
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....gaged only in the business of telecommunication services, there could be an enterprise which has more than one undertaking and one such undertaking could be in the telecommunication services. According to him, in such an event, a question might arise whether such an enterprise would be able to seek deduction both under Section 80IA (2A) as far as the telecommunication business is concerned, and under Section 80-IA (1) as far as any other eligible business is concerned. 13. In the first place as far as the present appeals are concerned, the above issue as posed by learned counsel for the Revenue is purely hypothetical. In any event, Section 80-IA (2A) treats an undertaking providing telecommunication services as a separate species warrant....