TaxTMI 
TaxTMI 
2026 (8) TMI 375
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....) r.w.s. 144B of the Act. 2. The only grievance of the assessee is that ld.CIT(A) erred in disallowing the clam of deduction u/s. 80JJA of the Act. 3. At the outset, ld. Counsel for the assessee submitted that assessee made the claim u/s. 80JJA firstly for A.Y. 2021- 22 and as per the provisions of section u/s. 80JJA of the Act such claim can be made for three assessment years starting from the assessment year in which the employees are employed. He submitted that the claim u/s. 80JJA of the Act for A.Y. 2021-22, 2022-23 has been allowed but the claim made for the year under appeal has been denied solely on account of observation of the Assessing Officer that there is no increase in the number of employees as compared to March, 2022. ....
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....includes any profits and gains derived from business, there shall, subject to the conditions specified in sub-section (2), be allowed a deduction of an amount equal to thirty per cent of additional employee cost incurred in the course of such business in the previous year, for three assessment years including the assessment year relevant to the previous year in which such employment is provided. (2) No deduction under sub-section (1) shall be allowed,- (a) if the business is formed by splitting up, or the reconstruction, of an existing business: Provided that nothing contained in this clause shall apply in respect of a business which is formed as a result of re-establishment, reconstruction or revival by the asses....
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....of increasing the total number of employees employed by the employer as on the last day of the preceding year, but does not include- (a) an employee whose total emoluments are more than twenty-five thousand rupees per month; or (b) an employee for whom the entire contribution is paid by the Government under the Employees' Pension Scheme notified in accordance with the provisions of the Employees' Provident Funds and Miscellaneous Provisions Act, 1952 (19 of 1952); or (c) an employee employed for a period of less than two hundred and forty days during the previous year; or (d) an employee who does not participate in the recognised provident fund: Provided that in the case of an assessee wh....
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....uction for any assessment year commencing on or before the 1st day of April, 2016." 6. Perusal of the above sub-section (1) of section 80JJAA of the Act indicates that in a case if the assessee fulfils the conditions mentioned in sub-section (2) of section 80JJAA of the Act he shall be allowed deduction for an amount equal to 30% of the additional employee cost incurred during the previous year for three assessment years including the assessment year relevant to the previous year. Assessee before us is claiming that a valid claim u/s. 80JJAA of the Act has been made and allowed for A.Y. 2021-22 and even the same has been subsequently allowed in A.Y. 2022-23 also. He also made a reference to the order of ld.CIT(A) for the preceding assess....
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....n view of the above Grounds of appeal given by appellant, the appeal raised by the appellant is hereby allowed for statistical purposes." 7. Assessee has claimed the third instalment of deduction u/s. 80JJAA of the Act and that too has been reduced after considering the employees who have left the job because of which the claim made in the preceding assessment year at Rs. 18,28,383 has been reduced to Rs. 14,58,544. 8. I however find that all these facts remained to be verified by the Assessing Officer and inspite of the fact that report u/s. 10DA was available in support of the said clam, however, ld. Assessing Officer has only referred to the remark that there is no increase in number of employees as compared to March 2022 and hence....