ITAT Allows Deduction Under Section 80IA and 33B for Business Discontinuance Due to Cyclone Damage

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....The ITAT upheld the CIT(A)'s decision allowing the assessee's deduction under section 80IA read with section 33B of the IT Act, 1961. The tribunal rejected the Department's contention that "discontinuance of business" requires permanent cessation with no intent to resume. Instead, it adopted the dictionary meaning of discontinuance as an interruption, temporary or permanent. The ITAT found that the assessee's business was extensively damaged by a cyclone, resulting in stoppage of production, qualifying as discontinuance under section 33B. Consequently, the proviso to section 80IA(2)(i) applied, permitting deduction despite reconstruction or revival of the business. The revenue's narrow interpretation was held to defeat the legislative inten.........