Vineet Sood & Sons vs Deputy Commissioner Of Income Tax

PER SATBEER SINGH GODARA, JM

This assessee’s appeal for assessment year 2018-19, arises against the Deputy Commissioner of Income Tax (Appeals)/National Faceless Appeal Centre [in short, the “CIT(A)/NFAC”], Delhi’s DIN and order no. ITBA/NFAC/S/250/2025-26/1077887925(1), dated 27.06.2025 involving proceedings under section 143(3) of the Income-tax Act, 1961 (hereinafter referred to as ‘the Act’).

Heard both the parties. Case file perused.

It transpires during the course of hearing that there arises the assessee’s solitary substantive grievance of allowability of its section 80-IA deduction amounting to Rs. 2,248/- for the limited purpose of computation only. This is for the precise reason that although it is admittedly entitled for the section 80-IA deduction qua its income “derived” from electricity generation, both the learned lower authorities hold that the same deserves to be disallowed/adjusted against the corresponding loss(es) declared under the business head from share trading amounting to Rs. 77,62,998/; already exceeding the deduction claiming herein.

This is the sole substantive issue which requires the tribunal’s apt adjudication herein.

We have given our thoughtful consideration to the assessee’s and the Revenue’s vehement submissions reiterating their respective stands. We note that hon’ble apex court’s recent landmark decision in CIT vs Reliance Energy Limited (2021) 441 ITR 346 (SC) has already settled the instant issue in the assessee’s favour and against the department that such an income u/s 80-IA(5) of the Act ought to be computed after treating the same as representing the only source of income derived from the eligible business. Learned counsel further quotes CIT vs Sona Koyo Steering Systems Pvt. Limited (2010) 321 ITR 463 (Del) to the very effect as well. We thus accept the assessee’s instant sole substantive grounds to direct the learned Assessing Officer to finalize its computation in very terms.

This assessee’s appeal is allowed.