Section 80-IA(4) of the Income Tax Act

Income-tax Act, 2025: s.138

Section 80-IA(4) falls under section 80IA of the Income-tax Act, 1961, which corresponds to section 138 (Deductions in respect of profits and gains from industrial undertakings or enterprises engaged in infrastructure development, etc) of the Income-tax Act, 2025.

Read section 138 of the 2025 Act

Correspondence checked against the ICAI tabular mapping of the two Acts and the BharatTax.co section commentary.

The decision most relied on for Section 80-IA(4) is CIT v. Shree Synthetics Ltd. (162 ITR 819), cited in 39 of the 86 judgments on BharatTax that turn on this section.

Leading authorities on Section 80-IA(4)

CIT v. Shree Synthetics Ltd.
162 ITR 819 · 1986 · High Court
39
citing judgments

Expenses incurred in connection with a public issue of shares or debentures are allowable as revenue expenditure eligible for deduction under section 35D of the Income-tax Act. This includes expenses related to Qualified Institutional Buyers (QIBs).

Associated Capsules Pvt. Ltd. v. DCIT
332 ITR 42 · 2011 · High Court
31
citing judgments

Section 80IA(9A) applies only at the stage of allowing deduction, not at the computation stage. Combined deductions under Section 80IA and 80HHC cannot exceed the gross total income.

EID Parry India's v. CIT
23 Taxmann.com 348 · 2012 · High Court
20
citing judgments

Unabsorbed depreciation of an amalgamating company cannot be added to the written down value of assets in the hands of the amalgamated company. The Supreme Court has dismissed a special leave petition against a High Court decision on this point, implicitly upholding this proposition.

CIT v. Modipon Ltd.
400 ITR 1 · 2018 · Supreme Court
18
citing judgments

The Supreme Court decision in CIT v. Modipon Ltd. (400 ITR 1) is authority for the treatment of PLA balance on excise duty and R&D cess, holding that such issues, when decided in favour of the assessee by the High Court and not appealed by the department to the Supreme Court, attain finality.

CIT v. Multi Metals Ltd.
188 ITR 151 · 1991 · High Court
17
citing judgments

Expenditure incurred in connection with the extension of an undertaking or the setting up of a new unit by an Indian company or resident is eligible for deduction under section 35D of the Income-tax Act.

DCM Ltd. v. CIT
198 ITR 69 · 1992 · Supreme Court
13
citing judgments
EID Parry (India) Ltd. v. DCIT
256 CTR 104 · High Court
7
citing judgments
CIT v. Multi Metals Ltd.
80 Taxmann.com 235 · 2017 · ITAT
6
citing judgments

Judgments on Section 80-IA(4)

N.R.Agarwal Industries Limited, Mumbai vs. Circle 2(3)(1), Mumbai

In the result, the appeal filed by the assessee is allowed

ITA 6582/MUM/2025[2018-19]Status: DisposedITAT Mumbai14 Aug 2026AY 2018-19

Bench: Shri Saktijit Dey & Shri Makarand Vasant Mahadeokarn. R. Agarwal Nfac, Delhi, Now Industries Limited Present Plot No. 169, 2Nd Phase, Vs. Jurisdiction: Circle Gidc, Vapi, I.E. S.O. 2(3)(1), Mumbai, Pardi, Valsad, Gujarat – Income-Tax Office, 396195. Aayakar Bhavan, Churchgate, Mumbai, Maharashtra- 400020 Pan/Gir No. Aaacn7721N (Applicant) (Respondent) Assessee By Shri Biren Shah, (Virtually Appeared) Revenue By Shri Yogesh Kamat, Cit Dr Date Of Hearing 23.06.2026 Date Of Pronouncement 14.08.2026

Section 142(1)Section 143(1)Section 143(2)Section 143(3)Section 144BSection 250Section 80Section 80I

DCIT, Circle 7(1), Kolkata, Aayakar Bhawan vs. Sarat Chatterjee & Co. Vsp Pvt. Ltd., Kolkata

In the result, the appeal of the revenue is dismissed

ITA 749/KOL/2025[2022-2023]Status: DisposedITAT Kolkata28 Jan 2026AY 2022-2023

Bench: Shri Rajesh Kumar & Shri Pradip Kumar Choubeyassessment Year: 2022-23 Dcit, Circle-7(1), Kolkata ………….……………………….……….……….……Appellant Vs. Sarat Chatterjee & Co. Vsp Pvt. Ltd…….…………………….....……...…..…..Respondent Vasundhara, 9Th Floor, Sarat Bose Road, L R Sarani, Kol-20.. [Pan: Aadcs6139A] Appearances By: Shri Pradip Kumar Biswas, Addl. Cit-Sr. Dr, Appeared On Behalf Of The Appellant. Shri Rishav Jain, Ar, Appeared On Behalf Of The Respondent. Date Of Concluding The Hearing : December 12, 2025 Date Of Pronouncing The Order : January 28, 2026 Order Per Pradip Kumar Choubey: This Appeal Filed By The Revenue Is Directed Against The Order Dated 29.10.2024 Of The National Faceless Appeal Centre [‘Cit(A)’] Passed Under Section 250 Of The Income-Tax Act, 1961 (Hereinafter Referred To As “The Act”) For The Assessment Year 2014–15. 2. The Appeal Has Been Filed By The Revenue With A Delay Of 159 Days & The Revenue Has Filed A Petition For Condonation Of The Delay. After Going Over The Said Petition, We Find Sufficient Reasons Behind The Delay & Consequently, The Delay In Filing The Appeal Is Hereby Condoned & We Proceed To Dispose Of The Appeal On Merits.

Section 143(1)Section 250Section 80Section 80I

Bsc Candc Joint Venture vs. Assistant Commissioner of Income Tax

ITA/40/2026HC Delhi22 Jan 2026

Bench: The Cbdt To Seek Relaxation. 2. The Facts As Pleaded In The Case Are That Due To Inadvertence, The Appellant Did Not Claim Deduction Under Section 80-Ia(4) Of The Act Of 1961, While Filing The Original Return. The Same Was However Claimed Before The Commissioner Income Tax Appeal During Appellate Proceedings. 3. Learned Counsel Submitted That So Far As The Appellant’S Entitlement For Claiming Exemption & Its Eligibility Is Concerned, The Same Is Not In Dispute, Which Is Evident From The Facts That In Subsequent Years The This Is A Digitally Signed Order. The Authenticity Of The Order Can Be Re-Verified From Delhi High Court Order Portal By Scanning The Qr Code Shown Above. The Order Is Downloaded From The Dhc Server On 24/01/2026 At 12:45:36

Section 119Section 80

Patel Sew Joint Venture, Telangana vs. DCIT., Circle-6(1), Hyderabad

In the result, the cross-objection filed by the assessee is dismissed

ITA 884/HYD/2025[2019-20]Status: DisposedITAT Hyderabad19 Dec 2025AY 2019-20
Section 139(5)Section 143(1)Section 234ASection 234BSection 234CSection 80Section 801A(4)

ACIT., Circle-6(1), Hyderabad vs. Patel Sew Jointventure, Hyderabad

In the result, the cross-objection filed by the assessee is dismissed

ITA 742/HYD/2025[2023-24]Status: DisposedITAT Hyderabad19 Dec 2025AY 2023-24
Section 139(5)Section 143(1)Section 234ASection 234BSection 234CSection 80Section 801A(4)

M/S. Tega Industries Limited, Kolkata vs. D.C.I.T., Circle - 11(1), Kolkata

In the result, the appeal filed by the assessee is partly allowed

ITA 1875/KOL/2024[2020-2021]Status: DisposedITAT Kolkata11 Dec 2025AY 2020-2021

Bench: Shri George Mathan & Shri Rakesh Mishra

Section 143(3)Section 144Section 144C(5)Section 92BSection 92CSection 92C(3)

DCIT-CC-8(4), Mumbai vs. Savita Oil Technologies Limited, Mumbai

In the result, appeal of the Revenue is dismissed

ITA 4292/MUM/2025[2018-19]Status: DisposedITAT Mumbai10 Nov 2025AY 2018-19

Bench: Shri Saktijit Dey, Hon'Ble & Shri Girish Agrawalassessment Year: 2018-19 Dcit-Cc-8(4), Savita Oil Technologies Limited Mumbai 66-67 Nariman Bhavan, Vs. Nariman Point, Mumbai 400021, Pan: Aaacs7934A (Appellant) (Respondent) Present For: Assessee : Shri Yogesh Thar & Shri Chaitanya Joshi, Cas Revenue : Shri Rajesh Kumar Yadav, Cit Dr Date Of Hearing : 13.08.2025 Date Of Pronouncement : 10.11.2025 O R D E R Per Girish Agrawal: This Appeal Filed By The Revenue Is Against The Order Of Cit (A) 50, Mumbai, Vide Order No. Itba/Apl/S/250/2025-26/1075632908(1), Dated 15.04.2025 Passed Against The Assessment Order By Acit,Cc- 8(4), Mumbai, U/S.143(3) Of The Income-Tax Act, 1961 (Hereinafter Referred To As The “Act”), Dated 24.08.2021 For Ay 2018-19. 2. Grounds Taken By The Revenue Are Reproduced As Under: “1. Whether On The Facts & In The Circumstances Of The Case, The Hon'Ble Cit(A) Was Justified In Law In Allowing Deduction Under Section 80-Ia(4) Of The Income- Tax Act, 1961, Without Adjusting The Losses Incurred By The Eligible Undertaking Prior To The Initial Assessment Year, Contrary To The Provisions Of Section 80-Ia(S)? 2. Whether The Hon'Ble Cit(A) Was Correct In Law In Relying Upon Cbdt Circular No. 1/2016 & The Decision Of The Hon'Ble Madras High Court In The Case Of Vcllayudhaswamy Spinning Mills Pvt. Ltd. (340 Itr 477) When There Exist Contrary Binding Judicial Precedents Mandating That Losses Of Earlier Years, Even

For Appellant: Shri Yogesh Thar and Shri Chaitanya Joshi, CAsFor Respondent: Shri Rajesh Kumar Yadav, CIT DR
Section 143(3)Section 37Section 80Section 80GSection 80I

M.S. Khurana Engineering Limited, Ahmedabad vs. The DCIT, Circle-2(1)(2), Ahmedabad

ITA 2171/AHD/2018[2014-15]Status: DisposedITAT Ahmedabad31 Jul 2025AY 2014-15

Bench: Shri Sanjay Garg & Shri Makarand V. Mahadeokar

For Appellant: Shri Deepak Rindani, ARFor Respondent: Shri R.P. Rastogi, CIT-DR &
Section 14ASection 80Section 80I

M.S. Khurana Engineering Limited, Ahmedabad vs. The ACIT, Circle-2(1)(2), Ahmedabad

ITA 2170/AHD/2018[2013-14]Status: DisposedITAT Ahmedabad31 Jul 2025AY 2013-14

Bench: Shri Sanjay Garg & Shri Makarand V. Mahadeokar

For Appellant: Shri Deepak Rindani, ARFor Respondent: Shri R.P. Rastogi, CIT-DR &
Section 14ASection 80Section 80I

M.S. Khurana Engineering Limited, Ahmedabad vs. The DCIT, Circle-2(1)(2), Ahmedabad

ITA 2169/AHD/2018[2012-13]Status: DisposedITAT Ahmedabad31 Jul 2025AY 2012-13

Bench: Shri Sanjay Garg & Shri Makarand V. Mahadeokar

For Appellant: Shri Deepak Rindani, ARFor Respondent: Shri R.P. Rastogi, CIT-DR &
Section 14ASection 80Section 80I

M.S. Khurana Engineering Limited, Ahmedabad vs. The ACIT, Circle-2(1)(2), Ahmedabad

ITA 2168/AHD/2018[2011-12]Status: DisposedITAT Ahmedabad31 Jul 2025AY 2011-12

Bench: Shri Sanjay Garg & Shri Makarand V. Mahadeokar

For Appellant: Shri Deepak Rindani, ARFor Respondent: Shri R.P. Rastogi, CIT-DR &
Section 14ASection 80Section 801A(4)Section 80I

M.S. Khurana Engineering Limited, Ahmedabad vs. The Dy. CIT, (OSD)-1, Circle-4, Ahmedabad

ITA 659/AHD/2016[2011-12]Status: DisposedITAT Ahmedabad31 Jul 2025AY 2011-12

Bench: Shri Sanjay Garg & Shri Makarand V. Mahadeokar

For Appellant: Shri Deepak Rindani, ARFor Respondent: Shri R.P. Rastogi, CIT-DR &
Section 14ASection 80Section 80I

M.S. Khurana Engineering Limited, Ahmedabad vs. The Dy. CIT, (OSD)-1, Circle-4, Ahmedabad

ITA 658/AHD/2016[2010-11]Status: DisposedITAT Ahmedabad31 Jul 2025AY 2010-11

Bench: Shri Sanjay Garg & Shri Makarand V. Mahadeokar

For Appellant: Shri Deepak Rindani, ARFor Respondent: Shri R.P. Rastogi, CIT-DR &
Section 14ASection 80Section 80I

M.S. Khurana Engineering Limited, Ahmedabad vs. The Jt. CIT, Range-4, Ahmedabad

ITA 1608/AHD/2014[2009-10]Status: DisposedITAT Ahmedabad31 Jul 2025AY 2009-10

Bench: Shri Sanjay Garg & Shri Makarand V. Mahadeokar

For Appellant: Shri Deepak Rindani, ARFor Respondent: Shri R.P. Rastogi, CIT-DR &
Section 14ASection 80Section 80I

Madhya Pradesh Road Development Corporation Limited, Bhopal vs. DCIT ACIT 2(1), Bhopal

Appeal is allowed for statistical purpose

ITA 346/IND/2024[2017-18]Status: DisposedITAT Indore25 Mar 2025AY 2017-18

Bench: Shri B.M. Biyani & Shri Paresh M. Joshiassessment Year:2017-18 Madhya Pradesh Road Dcit/Acit-2(1) Development Corporation Bhopal Limited बनाम/ 45-A, Arera Hills Vs. 46-Bhopal (Assessee/Appellant) (Revenue/Respondent) Pan: Aagcm5306C Assessee By Shri Manoj Munshi & Shri Vikas Guru, Ars Revenue By Shri Ram Kumar Yadav, Cit-Dr Date Of Hearing 25.03.2025 Date Of Pronouncement 25.03.2025

Section 143(3)Section 80

Asst.Commissioner of Income Tax, TDS 2 1, Mumbai vs. Patel Engineering Limited, Mumbai

ITA 3065/MUM/2024[2018-19]Status: DisposedITAT Mumbai31 Dec 2024AY 2018-19
Section 194ASection 201

Jmc-Mske(Jv), Ahmedabad vs. Income Tax Officer, Ward-5(2)(3), Ahmedabad

In the result, appeal filed by the assessee in ITA no

ITA 830/AHD/2016[2011-12]Status: DisposedITAT Ahmedabad07 Nov 2024AY 2011-12

Bench: Us & That These Four

For Appellant: S/Sh. D.M. Rindani and Sh. Chintan Shah, RRsFor Respondent: Sh. Ashok Kumar Suthar, Sr. DR
Section 143(2)Section 143(3)Section 80

Jmc-Mske(Jv), Ahmedabad vs. Income Tax Officer, Ward-5(2)(3), Ahmedabad

In the result, appeal filed by the assessee in ITA no

ITA 829/AHD/2016[2010-11]Status: DisposedITAT Ahmedabad07 Nov 2024AY 2010-11

Bench: Us & That These Four

For Appellant: S/Sh. D.M. Rindani and Sh. Chintan Shah, RRsFor Respondent: Sh. Ashok Kumar Suthar, Sr. DR
Section 143(2)Section 143(3)Section 80

Bgsctpl- Mskel (Jv), Ahmedabad vs. The Income Tax Officer, Ward-5(2)(1), Ahmedabad

In the result, appeal filed by the assessee in ITA no

ITA 828/AHD/2016[2011-12]Status: DisposedITAT Ahmedabad07 Nov 2024AY 2011-12

Bench: Us & That These Four

For Appellant: S/Sh. D.M. Rindani and Sh. Chintan Shah, RRsFor Respondent: Sh. Ashok Kumar Suthar, Sr. DR
Section 143(2)Section 143(3)Section 80

Bgsctpl- Mskel Consortium, Ahmedabad vs. The Income Tax Officer, Ward-10(1), Ahmedabad

In the result, appeal filed by the assessee in ITA no

ITA 2498/AHD/2013[2010-11]Status: DisposedITAT Ahmedabad07 Nov 2024AY 2010-11

Bench: Us & That These Four

For Appellant: S/Sh. D.M. Rindani and Sh. Chintan Shah, RRsFor Respondent: Sh. Ashok Kumar Suthar, Sr. DR
Section 143(2)Section 143(3)Section 80