TaxTMI 
TaxTMI 
2026 (9) TMI 1891
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....ax Act, 1961 (for short 'the Act') as well as the order dated 07.04.2022 passed under Section 148A(d) of the Act seeking to reopen the tax assessment of the petitioner for the assessment year 2018-19. FACTS OF THE CASE 2. The petitioner is engaged in the business of providing information technology enabled support services, software development & maintenance service and business process outsourcing services. For the assessment year 2018-19, the petitioner claimed deduction of Rs. 1,19,15,838/- under Section 80JJAA of the Act being 30% of the additional employees cost of Rs. 3,97,19,460/-. Such additional employees cost was in respect of salary paid to additional employees recruited in Financial Year (F.Y) 2016-17 i.e. Rs. 2,85,55,735/....
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....d 21.03.2022 under Section 148A(b) calling upon the petitioner to submit the details relating to deduction under Section 80JJAA of the Act for F.Y 2016-17. Accordingly, the petitioner furnished a reply to the Show Cause Notice dated 21.03.2022 giving all the details relating to deduction under Section 80JJAA of the Act. Thereafter, the respondent passed order dated 07.042022 under Section 148A(d) of the Act, concluding that there was escapement of income chargeable to tax by recording that the deduction under Section 80JAA of the Act was not claimed in A.Y 2017-18 (F.Y) 2016-17 and had wrongly claimed deduction of Rs. 85,66,720/- being 30 % of Rs. 2,85,55,735/-and accordingly also issued notice under Section 148 of the even date which has b....
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....ired to be disallowed and added back to the total income of the assessee which was not done in the original scrutiny assessment. ANALYSIS & OPINION 5. We have heard the learned advocates appearing for the respective parties at length. 6. The established facts from the pleadings on record are that for the year under consideration i.e. for A.Y 2018-19, the petitioner claimed deduction of Rs.1,19,5838 under Section 80JJAA of the Act, being 30% of the additional employees cost of Rs.3,97,19,460/- in respect to the salary paid to the additional employees recruited during the F.Y 2016-17 and F.Y 2017-18. The petitioner obtained prescribed Form 10DA for claiming the deduction and filed its return of income on 29.11.2018, declaring a total....
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....eduction from the total income under Chapter VI A of the Act. The Assessing Officer while passing the scrutiny assessment order under Section 143(3) of the Act has categorically recorded that the claim of the assessee of deduction under Section 80JJAA of the Act, amounting to Rs. 1,19,15,838/- being 30% salary paid to the additional eligible employees is accepted. It was further recorded that the details of the additional eligible employees have been provided by the assessee and accordingly, upon verification of submissions given by the assessee on the claim of deduction, the said claim of assessee had been accepted. Thus, in the original scrutiny proceedings under Section 143(3) of the Act, the Assessing Officer had already examined the ve....