Deduction under s 80-IA/80-IB

Expansion or extension of an existing unit will not disentitle the assessee to claim the deduction under s 80-IA/80-IB, as held by AgraTrib in Aqua Plumbing (P) Ltd v ACIT — In favour of: The assessee; IT Appeal Nos 447 (Agra) of 2006 and 698 (Agra) of 2008: (AYs 2004–2005 and 2005–2006).

Decided on: 31 May 2011.

The conditions, as laid down for claiming the deduction under s 80-IB, are to be complied within the initial year and not in all the assessment years in which the assessee is eligible for deduction.

In favour of: Others.

Business expenditure — Whenever an assessee claims an expenditure to have been incurred for the purpose of business, the onus is on the assessee to prove the genuineness of the expenditure.

If the directors and the employees of the company, as per the terms and conditions of their appointment, are entitled to use the case for personal purposes as well as to avail of the facilities of mobile/phone calls, the same is allowable under s 37.