VINEET SOOD & SONS ,NEW DELHI vs. DEPUTY COMMISSIONER , NEW DELHI

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ITA 1185/DEL/2026Status: DisposedITAT Delhi29 May 2026AY 2018-193 pages
AI SummaryAllowed

What did the Tribunal hold?

The Tribunal held that the Section 80-IA deduction should be computed by treating the income from eligible business as the sole source. This decision is based on the Supreme Court's ruling in CIT vs Reliance Energy Limited.

What were the facts?

The assessee claimed a deduction under Section 80-IA for income derived from electricity generation. However, the lower authorities disallowed this deduction, adjusting it against losses from share trading which already exceeded the claimed deduction.

What were the issues?

Whether Section 80-IA deduction should be allowed after considering income from eligible business as the sole source, irrespective of other losses.

Which sections of the Income-tax Act were involved?

Section 80-IA

AI-generated summary — verify with the full judgment below

Income Tax Appellate Tribunal, DELHI BENCH: ‘G’ NEW DELHI

Before: SHRI SATBEER SINGH GODARA & SHRI NAVEEN CHANDRA

For Appellant: Shri Rakesh Verma, CA
For Respondent: Shri Choudhary N.C. Roy, Sr. DR
Hearing: 12.05.2026Pronounced: 29.05.2026

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

ITA No.1185/Del/2026 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.

2.

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.

3.

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 2 | P a g e

ITA No.1185/Del/2026 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.

4.

This assessee’s appeal is allowed.

Order pronounced in the open court on 29.05.2026 .

Sd/- Sd/- (NAVEEN CHANDRA) (SATBEER SINGH GODARA) ACCOUNTANT MEMBER JUDICIAL MEMBER Dated: 29.05.2026 Pooja Mittal/- Copy forwarded to: 1. Appellant 2. Respondent 3. CIT 4. CIT(A) 5. DR Asst. Registrar, ITAT, New Delhi

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