Section 80IA

This query is : Resolved

CA Brijesh Gandhi (Querist)
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25 April 2009 ABC Co. is a subsidiary co. who is engage in power generation in India.

Query:
whether ABC co. eligible for deduction u/s 80IA/IB/IC.
if yes is there any caselaw or judgment available for this related topic in which Subsidiary co. eligible for deduction.

please don't reply for reading of ITAct. b'coz in act in Sec.80IA no where mention for Subsidiary co.

taxindiaconnect

taxindiaconnect (Expert)
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26 April 2009 Section 80IA exempt the income of an undertaking. The undertaking is not a legal entity, the subsidiary is however is a separate legal entity. Each separate legal entity may have various undertaking and those undertaking would be eligible of deduction if the unit is engaged in the business of electricity generation. The unit has to comply all the conditions prescribed in section 80IA. I do not find any reason in your query why undertaking of ABC Co should not be eligible for deduction as this is engaged in the generation of electricity. A company may have only one undertaking also.