80IB/80IC deduction Once allowed, can’t be denied later without withdrawing initial year relief

Jyothy Labs Limited Vs ACIT (ITAT Mumbai)

Once allowed, can’t be denied later without withdrawing initial year relief – ITAT Mumbai on 80IB/80IC deduction

Major issues & findings

Deduction u/s 80IB/80IC

Revenue disallowed deduction for Ujala Supreme on the ground that it is not “manufacturing.” ITAT followed its earlier orders & held that fabric whitener production constitutes manufacturing under Section 2(29BA). AO had allowed such deductions in initial years (starting AY 2009–10). 

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