In my personal opinion, the deduction should be allowed.
80JJAA. (1) Where the gross total income of an assessee to whom section 44AB applies, includes any profits and gains derived from business, there shall, subject to the conditions specified in sub-section (2), be allowed a deduction of an amount equal to thirty per cent of additional employee cost incurred in the course of such business in the previous year, for three assessment years including the assessment year relevant to the previous year in which such employment is provided.
It is not written "relevant to the previous year in which such deduction was claimed."
Further, the word used in "incurred" and not "claimed or deduction claimed or similar phrase".
S.80JJAA is a beneficial provision and not a penal provision. Therefore, it must be interpreted liberally and not literally. Further, if you go by the language used in the form 10DA, there is nothing which indicates that the benefit is mandatorily to be claimed in each of the 3 assessment years (like in case of Depreciation, which by the virtue of the explanation is mandatorily to be claimed). The certificate is not in respect of a block of 3 assessment years, but it appears to be for a particular assessment year.
I/We* certify that the deduction to be claimed by the assessee under sub-section (1) of section 80JJAA of Income tax Act, 1961, in respect of the assessment year _______________ is Rs. ___________ determined on the basis of additional employee cost incurred in the case of said business by the assessee in the previous year. The said amount has been worked out on the basis of details given in annexure to this form.
Form
https://www.incometaxindia.gov.in/forms/income-tax%20rules/103120000000007823.pdf
If you take a view that the certificate is in respect of block of 3 assessment years, then what treatment shall you give if in Year 2 there is the employment of additional employees and there is another increment to the employment of employees in year 3?
Will that certificate issued in year 1 contains the details of additional employment in year 2 and year 3?
If you go solely by the certificate in Year 1, then it would imply that you are not going to claim deduction u/s 80JJAA in respect of additional employees in Year 2 and Year 3.
Therefore, the certificate has to be issued separately for each assessment year.
Further, even the annexure to the form contains details of only 1 assessment year.
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