ITAT Bangalore: Power Generation Incentive Eligible for 80-IA Deduction-Direct Nexus with Business Established

Sokke Kaliveerappa Shivaraj Vs ACIT (ITAT Bangalore) ITAT Bangalore: Power Generation Incentive Eligible for 80-IA Deduction-Direct Nexus with Business Established In the case of Sokke Kaliveerappa Shivaraj, the Bangalore ITAT held that Generation Based Incentive (GBI) received from the Government is eligible for deduction u/s 80-IA, overturning the AO and CIT(A)’s disallowance. The key issue was whether ₹25.91 lakh incentive, received based on electricity generation under the GBI scheme, qualifies as “profits derived from” the eligible business. The AO/CIT(A) had denied deduction rely...