S. 80IA: Option to claim deduction post business commencement

Brief of the Case

Madras High Court held In the case of CIT vs. M/s. G.R.T. Jewelers (India) Pvt. Ltd. that as per CBDT Circular No. 1/2016 dated 15.2.2016, it is clear that the assessee has option to claim deduction in subsequent years i.e. he can choose initial assessment year for claiming deduction even post commencement of business. It is not necessary to claim deduction starting from fist year of commencement of operations. Hence, assessee has option to choose first assessment year of claim for deduction u/s 80IA.

Facts of the Case

The following substantial questions of law were raised-

-Whether under the facts and circumstances of the case, the Income Tax Appellate Tribunal was correct in holding that the initial assessment year in Section 80IA(5) would only mean the year of claim of deduction under Section 80IA and not the year of commencement of eligible business ?

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