Section 80-IAB of the Income Tax Act
Income-tax Act, 2025: s.139
Section 80-IAB of the Income-tax Act, 1961 corresponds to section 139 (Deductions in respect of profits and gains by an undertaking or enterprise engaged in development of Special Economic Zone) of the Income-tax Act, 2025.
Read section 139 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-IAB is CIT v. Karnal Co-operative Sugar Mills Ltd. (243 ITR 2), cited in 125 of the 45 judgments on BharatTax that turn on this section.
Leading authorities on Section 80-IAB
Income earned from deposits or investments directly and inextricably linked to the acquisition of assets or the setting up of a business project during its construction period is incidental to the asset acquisition, reducing the project cost, or constitutes business receipts eligible for relevant deductions, rather than 'income from other sources'.
Expenditure capitalized as tangible/know-how/brand development that is revenue in nature can be claimed as a revenue expense in a revised return, with depreciation claimed thereon being consequently reduced.
