Section 80IAB of the Income Tax Act
Income-tax Act, 2025: s.139
Section 80IAB 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 80IAB is CIT v. Steller Investment Ltd. (59 Taxmann 568), cited in 55 of the 88 judgments on BharatTax that turn on this section.
Leading authorities on Section 80IAB
Expenditure incurred to remove the possibility of recurring disadvantage is not considered a payment made to secure an enduring advantage. Revenue expenditure is operational and intended for the furtherance of the enterprise.
The computation of profits for a life insurance business must follow a special, artificial mode prescribed in the First Schedule of the Income Tax Act, rather than the standard method for ordinary assessees.
Failure to furnish Form 56F along with the return of income does not automatically lead to denial of deduction under section 10AA of the Income Tax Act, as the filing of the form is held to be directory in nature.
Expenses incurred for business exigency and expediency are allowable as deductions under section 37 of the Income Tax Act.
