• Jun 12, 24
• bhushanbjain
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Claiming deductions under Section 10AA of the Income Tax Act, 1961 (IT Act) provides significant tax benefits to entrepreneurs operating units within Special Economic Zones (SEZs). However, there are certain consequences associated with claiming these deductions, which entrepreneurs should be aware of.

Tax Benefits under   income tax act:

Section 10AA allows for a deduction of 100% of export profits for the first five years and 50% of export profits for the next five years. This effectively reduces the effective tax rate for export-oriented SEZ units, making them more competitive in the global market.

Consequences under   income tax act:

1. Strict Eligibility Criteria under   income tax act:

To avail the deduction under Section 10AA, SEZ units must meet stringent eligibility criteria. The unit must be located within an approved SEZ, commence operations after April 1, 2005, and export at least 50% of its production or services. Failure to meet these criteria may result in disallowance of the deduction.

2. Utilization of Reinvestment Reserve under   income tax act:

Section 10AA mandates that SEZ units maintain a Reinvestment Reserve Account (RRA) to reinvest profits for expansion or modernization. Unutilised funds in the RRA are subject to tax in the year immediately following the three-year period.

3. Audit Requirements under   income tax act:

SEZ units claiming deductions under Section 10AA are subject to rigorous auditing by tax authorities. Proper documentation, including sales invoices, shipping documents, and RRA statements, is essential to substantiate the deduction claim.

4. Fraudulent Practices under   income tax act:

Any attempt to misrepresent facts or inflate export figures to claim excess deductions may attract penalties and legal action under the IT Act and other relevant laws.

5. Tax Audits and Scrutiny under   income tax act:

Claiming deductions under Section 10AA increases the likelihood of tax audits and scrutiny by the authorities. Entrepreneurs should maintain proper records and be prepared for detailed questioning.

6. Potential for Limitation of Benefits under   income tax act:

In cases of abuse or non-compliance, the tax authorities may limit the deduction period or even deny it altogether.

7. Risk of Double Taxation under   income tax act:

If the profits earned by an SEZ unit are also taxable under another tax regime, such as state taxes, there could be a potential for double taxation.

8. Tax Planning and Legal Advice under   income tax act:

Entrepreneurs should seek expert advice from tax consultants and legal professionals to ensure compliance with Section 10AA and optimize their tax benefits.

EXAMPLE

Section 10AA of the Income Tax Act, 1961, provides for a 100% deduction of profits and gains derived from a newly established industrial unit in a special economic zone (SEZ) or a backward area. This deduction is available for a period of ten years, subject to certain conditions.

Consequences of claiming deductions under section 10AA

1. Lock-in on funds: The deduction under section 10AA is available only if the assesses invests the entire capital expenditure incurred on the unit in the SEZ or backward area. This means that the assesses cannot withdraw the capital from the unit for a period of ten years.
2. Restriction on transfer of assets: The assesses cannot transfer any asset of the unit to a person who is not eligible for the deduction under section 10AA. This includes any transfer of shares, property, or any other asset that has been used to derive the tax-exempt profits.
3. Restriction on change in business: The assesses cannot change the main line of business of the unit during the ten-year deduction period. This means that the unit must continue to manufacture the same products or provide the same services for which it was granted the deduction.
4. Requirement of maintaining books of accounts: The assesses is required to maintain proper books of accounts and records of all transactions relating to the unit. These records must be available for inspection by the tax authorities.
5. Liability to pay additional tax in certain cases: If the assesses fails to comply with any of the conditions for claiming the deduction under section 10AA, it may be liable to pay additional tax. This includes interest and penalty charges.

Example of consequences with a specific state

Consider a company that sets up a new industrial unit in a SEZ in Tamil Nadu, India. The company claims a deduction under section 10AA for the first ten years of operation. During this period, the company cannot withdraw any capital from the unit. Additionally, the company cannot transfer any assets of the unit to a person who is not eligible for the deduction under section 10AA. The company also cannot change the main line of business of the unit during the ten-year deduction period.

After ten years, the company can withdraw the capital from the unit. However, if the company ceases to manufacture the products or provide the services for which it was granted the deduction, it may be liable to pay additional tax.

CASE LAWS

Vijay Industries Ltd. vs. Commissioner of Income Tax: In this case, the Supreme Court held that the deduction under Section 10AA is allowed on the commercial profit of a SEZ unit, which means that the deduction is calculated before claiming any tax depreciation or investment allowance.

Reliance Industries Ltd. vs. Commissioner of Income Tax: In this case, the Mumbai Bench of the Income-tax Appellate Tribunal (ITAT) held that the taxpayer is eligible to claim deduction under Section 10AA with reference to commercial profits (i.e. without deducting tax depreciation and investment allowance under the Act).

Collector of Income Tax vs. M/s. Indofil Chemicals & Pharmaceuticals Limited: In this case, the Bombay High Court held that the deduction under Section 10AA is not available to a SEZ unit if the unit is engaged in the business of trading or dealing in goods.

Commissioner of Income Tax vs. M/s. Sterlite Optical Technologies Ltd.: In this case, the Madras High Court held that the deduction under Section 10AA is not available to a SEZ unit if the unit’s profits are primarily derived from the sale of goods purchased from outside the SEZ.

Commissioner of Income Tax vs. M/s. Tata Consultancy Services Ltd.: In this case, the Delhi High Court held that the deduction under Section 10AA is available to a SEZ unit even if the unit’s profits are derived from the export of software services.

POWER OF ASSESING OFFICER TO RECOMPUTE PROFIT

The power of the Assessing Officer (AO) to recompute the profit under the Income Tax Act arises in certain situations where the AO believes that the declared profit of a taxpayer is not accurate or does not reflect the true income of the taxpayer.

In such cases, the AO may use one of the following methods to recompute the profit:

• Best Judgment Method: Under this method, the AO estimates the profit of the taxpayer based on the available information, including the taxpayer’s books of accounts, bank statements, and other relevant documents.
• Direct Estimation Method: Under this method, the AO directly estimates the profit of the taxpayer based on factors such as the taxpayer’s gross receipts, expenses, and industry benchmarks.
• Block Assessment Method: Under this method, the AO determines the profit of the taxpayer based on a predetermined rate or percentage of the taxpayer’s turnover or gross receipts.

The AO may also use a combination of these methods to recompute the profit of the taxpayer.

The power of the AO to recompute the profit is subject to certain safeguards, such as the requirement for the AO to give the taxpayer a reasonable opportunity to be heard and to provide evidence in support of their declared profit.

The taxpayer also has the right to appeal the AO’s precomputation of profit to the Commissioner of Income Tax (Appeals) and, if necessary, to the Income Tax Appellate Tribunal (ITAT).

Here are some specific examples of when the AO may use their power to recompute the profit of a taxpayer:

• If the taxpayer’s books of accounts are incomplete or unreliable
• If the taxpayer’s declared expenses are excessive or unreasonable
• If the taxpayer’s gross receipts are understated
• If the taxpayer’s profit margins are significantly lower than industry benchmarks

EXAMPLE

The power of an assessing officer to recompute the profit of a taxpayer varies from state to state in India. In some states, the assessing officer has the power to recompute the profit of a taxpayer if he is not satisfied with the taxpayer’s self-assessment. In other states, the assessing officer can only recompute the profit if he has reason to believe that the taxpayer’s self-assessment is incorrect.

For example, in the state of Karnataka, the assessing officer has the power to recompute the profit of a taxpayer if he is not satisfied with the taxpayer’s self-assessment. This power is given to the assessing officer under section 145 of the Karnataka Tax Act, 1957.

In the state of Maharashtra, the assessing officer can only recompute the profit of a taxpayer if he has reason to believe that the taxpayer’s self-assessment is incorrect. This power is given to the assessing officer under section 147 of the Maharashtra Tax Act, 1956.

The power of an assessing officer to recompute the profit of a taxpayer is a significant power that can have a major impact on the taxpayer’s tax liability. It is important for taxpayers to be aware of the extent of this power in their state.

FAQ QUESTIONS

The assessing officer has the power to recompute the profit of an assesses under the Income Tax Act, 1961, if he is satisfied that the returned profit is incorrect. The assessing officer can do this by making adjustments to the assesses income or expenses. The assessing officer must give the assesses a reasonable opportunity to be heard before making any adjustments. If the assesses is not satisfied with the assessing officer’s decision, he can appeal to the Commissioner of Income Tax (CIT).

There are a number of situations in which the assessing officer may recompute the profit of an assesses, including:

• If the assesses has not disclosed all of his income
• If the assesses has claimed expenses that are not allowable under the Income Tax Act
• If the assesses has used an incorrect method of accounting
• If the assesses has made a mistake in calculating his profit

If the assessing officer recomputes the profit of an assesses, he will issue a notice of assessment to the assesses. The notice of assessment will show the assesses revised income and tax liability. The assesses has 30 days from the date of the notice of assessment to file an appeal with the CIT.

Here are some of the powers of the assessing officer to recompute profit under the Income Tax Act:

• The assessing officer can disallow any expenditure which is not wholly and exclusively for the purpose of the business or profession.
• The assessing officer can make any adjustment for any loss, expenditure or depreciation which he considers necessary to meet the requirements of the Income Tax Act.
• The assessing officer can make any adjustment for any difference between the book profit and the profit as assessed by him.
• The assessing officer can make any adjustment for any income or loss which has not been disclosed in the return of income.

CASE LAWS

1. Commissioner of Income Tax v. Woodward Governor Ltd. [(2009) 312 ITR 254]: The Supreme Court held that the assessing officer can reject the assesses books of account only if he is satisfied that they do not reflect the true income of the assesses. The assessing officer cannot reject the books of account merely because he disagrees with the method of accounting adopted by the assesses.
2. Garden Silk Weaving Factory v. Commissioner of Income-tax [(1991) 189 ITR 512]: The Supreme Court held that the assessing officer must give proper reasons for rejecting the assesses books of account. Mere suspicion or conjecture is not sufficient to reject the books of account.
3. Jaipuri China Clay Mines (P) Ltd. v. Commissioner of Income-tax [(1966) 59 ITR 555]: The Supreme Court held that the assessing officer cannot recompute the assesses profit by adopting an arbitrary method of accounting. The assessing officer must adopt a method of accounting that is fair and reasonable.

CLARIFICATION FROM BOARD

A clarification of board under Income Tax is an official statement issued by the Central Board of Direct Taxes (CBDT) to provide clarity on specific aspects of income tax law or procedure. These clarifications are typically issued in response to questions or concerns raised by taxpayers or tax professionals. They can also be issued proactively to address potential areas of confusion or uncertainty.

Clarifications of board under Income Tax are not binding law, but they are considered authoritative guidance by the Income Tax Department. They can be used by taxpayers to support their positions in tax disputes.

Here are some examples of clarifications of board under Income Tax:

• Clarification on the taxability of income from cryptocurrency
• Clarification on the deductibility of expenses incurred in working from home
• Clarification on the residency status of foreign nationals

FAQ QUESTIONS

What is clarification of the Board under the Income Tax Act?

Clarification of the Board under the Income Tax Act is a process through which taxpayers can seek clarification from the Central Board of Direct Taxes (CBDT) on any provision of the Income Tax Act or the Income Tax Rules. This process is typically used when there is doubt or uncertainty about the interpretation of a particular provision of the law.

Who can apply for clarification of the Board?

Any taxpayer who has a doubt or uncertainty about the interpretation of a provision of the Income Tax Act or the Income Tax Rules can apply for clarification of the Board. This includes individuals, companies, Hindu Undivided Families (HUFs), and any other person who is liable to pay income tax in India.

How to apply for clarification of the Board?

An application for clarification of the Board can be made online through the e-filing portal of the Income Tax Department. The application must be accompanied by a fee of Rs. 500.

What information should be included in the application?

The application for clarification of the Board should include the following information:

• The name and address of the applicant
• The PAN number of the applicant
• The provision of the Income Tax Act or the Income Tax Rules on which clarification is sought
• The facts of the case
• The questions on which clarification is sought

How long does it take to get a response from the Board?

The CBDT typically takes 3-6 months to respond to an application for clarification of the Board.

What is the effect of clarification of the Board?

A clarification of the Board is binding on the Income Tax Department and all taxpayers. This means that the Income Tax Department must follow the clarification when assessing a taxpayer’s tax liability.

In addition to the above, here are some other frequently asked questions about clarification of the Board:

Q: Can I apply for clarification of the Board if I have already filed my income tax return?

A: Yes, you can apply for clarification of the Board even if you have already filed your income tax return. However, you will need to explain why you did not apply for clarification before filing your return.

Q: Can I apply for clarification of the Board if I am under assessment by the Income Tax Department?

A: Yes, you can apply for clarification of the Board even if you are under assessment by the Income Tax Department. However, you may need to provide additional information to the Board, such as the notice of assessment that you have received.

Q: Can I apply for clarification of the Board if I am in dispute with the Income Tax Department?

A: Yes, you can apply for clarification of the Board even if you are in dispute with the Income Tax Department. However, it is important to note that a clarification of the Board will not necessarily resolve a dispute with the Income Tax Department.

CASE LAWS

• Circular No. 14 of 2023 – Circular to remove difficulty in implementation of changes relating to Tax Collection at Source (TCS) on Liberalised Remittance Scheme (LRS) and on purchase of overseas tour program package.
• Circular No. 13 of 2023 – Condonation of delay under clause (b) of sub-section (2) of section 119 of the Income-tax Act, 1961 for returns of income claiming deduction u/s 80P of the Act for various assessment years from AY 2018-19 to AY 2022-23.
• Circular No. 12 of 2023 – Clarification regarding taxability of income earned by a non-resident investor from off-shore investments in investment fund routed through an Alternative Investment Fund.
• Circular No. 11 of 2023 – Corrigenda to Circular No. 10 of 2023 dated 30th June, 2023.
• Circular No. 10 of 2023 – Circular to remove difficulty in implementation of changes relating to Tax Collection at Source (TCS) on Liberalised Remittance Scheme (LRS) and on purchase of overseas tour program package.

These circulars provide clarification on a variety of income tax matters, including TCS, deductions, and taxation of non-resident investors. They are an important resource for taxpayers and tax professionals alike.

In addition to the above, here are some other notable case laws of clarification from the Board under Income Tax:

• Javeri v. K.K. Sen – This case held that circulars issued by the Central Board of Direct Taxes (CBDT) under Section 119 of the Income Tax Act, 1961 (IT Act) are binding on all officers and persons employed in the execution of the Act even if they deviate from the provisions of the Act.
• KeshavjiRavji and Co. v. Commissioner of Income-Tax – This case held that circulars beneficial to the assesses which tone down the rigour of the law and are issued in exercise of the statutory powers under Section 119 of the IT Act are binding on the authorities in the administration of the Act.
• UCO Bank, Calcutta v. Commissioner of Income-Tax – This case held that the CBDT cannot pre-empt a judicial interpretation of the scope and ambit of a provision of the IT Act. Also, a circular cannot impose on the tax-payer a burden higher than what the Act itself, on a true interpretation, envisages. The task of interpretation of the laws is the exclusive domain of the courts.

SPECIAL PROVISIONS IN RESPECT OF NEWELY ESTABLISHED HUNDRED PER CENT EXPORT – ORIENTED UNNDERTAKINGS [ SEC.10B]

Section 10B of the Income Tax Act, 1961 (the Act) provides special provisions for newly established hundred percent export-oriented undertakings (EOUs). These provisions aim to encourage exports and promote the growth of the manufacturing sector in India.

Eligibility Criteria

To be eligible for the deduction under Section 10B, an undertaking must meet the following conditions:

• It must manufacture or produce articles, things, or computer software.
• It must not be formed by the splitting up, or the reconstruction, of a business already in existence.
• It must export at least 95% of its production during the relevant period.
• It must maintain a prescribed export performance record.

Deduction Available

The deduction available under Section 10B is as follows:

• For assessment years beginning before 01-Apr-2012: 100% of the profits and gains derived from the export of eligible items.
• For assessment year beginning 01-Apr-2012 to 31-Mar-2015: 95% of the profits and gains derived from the export of eligible items.
• For assessment years beginning 01-Apr-2015 and subsequent years: No deduction is available.

Duration of Deduction

The deduction under Section 10B is available for a period of ten consecutive assessment years beginning with the assessment year relevant to the previous year in which the undertaking begins to manufacture or produce articles or things.

Benefits of the Deduction

The deduction under Section 10B can provide significant benefits to EOUs, including:

• Reduced tax liability
• Improved profitability
• Increased competitiveness

                                EXAMPLE

State: Tamil Nadu

Undertaking: A newly established hundred per cent export-oriented garment manufacturing company in Tamil Nadu.

Special Provisions:

• Exemption from income tax: The profits and gains derived by the undertaking from the export of garments for a period of ten consecutive assessment years beginning with the assessment year relevant to the previous year in which the undertaking begins to manufacture or produce garments, shall not be included in the total income of the assesses.
• Exemption from customs duty: The undertaking is exempt from customs duty on the import of machinery and equipment used for the manufacture of garments.
• Exemption from central excise duty: The undertaking is exempt from central excise duty on the manufacture of garments.
• Exemption from state VAT: The undertaking is exempt from state value-added tax (VAT) on the sale of garments.
• Incentives from the Tamil Nadu government: The Tamil Nadu government provides a number of incentives to hundred per cent export-oriented undertakings, including:
  • Capital subsidy: The government provides a capital subsidy of up to 25% of the cost of machinery and equipment imported by the undertaking.
  • Interest subsidy: The government provides an interest subsidy of up to 5% on loans taken by the undertaking for setting up and operating the garment manufacturing unit.
  • R&D subsidy: The government provides a subsidy of up to 50% of the cost of research and development (R&D) undertaken by the undertaking.

Benefits to the Undertaking:

• Tax exemption: The tax exemption provided under Section 10B of the Income Tax Act, 1961, can save the undertaking a significant amount of money on its income tax liability.
• Customs duty exemption: The customs duty exemption on the import of machinery and equipment can help the undertaking to reduce its costs and become more competitive.
• Central excise duty exemption: The central excise duty exemption on the manufacture of garments can further reduce the costs of the undertaking.
• State VAT exemption: The state VAT exemption on the sale of garments can help the undertaking to maintain its profitability.
• Incentives from the Tamil Nadu government: The capital subsidy, interest subsidy, and R&D subsidy provided by the Tamil Nadu government can help the undertaking to reduce its costs and invest in its growth.

                       FAQ QUESTIONS

What is the purpose of Section 10B of the Income Tax Act, 1961?

A: Section 10B provides special tax benefits to newly established hundred per cent export-oriented undertakings (EOUs). The objective of this section is to promote exports and boost economic growth.

Q: Who is eligible for the tax benefits under Section 10B?

A: To be eligible for the tax benefits under Section 10B, an undertaking must fulfill the following conditions:

• It must be newly established, i.e., it must have begun to manufacture or produce articles or things in the previous year relevant to the assessment year in which it claims the deduction.
• It must be a hundred per cent EOU, i.e., its entire income must be derived from the export of articles or things or computer software.
• It must not be formed by the splitting up or reconstruction of a business already in existence.

Q: What are the tax benefits available under Section 10B?

A: The tax benefits available under Section 10B include:

• A deduction of 100% of the profits and gains derived from the export of articles or things or computer software for a period of 10 consecutive assessment years, beginning with the assessment year in which the undertaking begins to manufacture or produce articles or things or computer software.
• The benefit of depreciation on assets used for the purposes of the business, even if the undertaking has not claimed the deduction in the relevant assessment years.

Q: Are there any conditions attached to the tax benefits under Section 10B?

A: Yes, there are a few conditions attached to the tax benefits under Section 10B:

• The undertaking must furnish a return of its income on or before the due date specified under sub-section (1) of section 139.
• The undertaking must export its products within 6 months from the end of the previous year, or within such further period as the competent authority may allow.
• The sale proceeds of the exported products must be received in convertible foreign exchange.

Q: What happens if the undertaking fails to fulfil any of the conditions attached to the tax benefits?

A: If the undertaking fails to fulfil any of the conditions attached to the tax benefits under Section 10B, it will be liable to pay tax on the profits and gains that were earlier exempted from tax.

Q: How do I claim the tax benefits under Section 10B?

A: To claim the tax benefits under Section 10B, you must file a return of income and attach a copy of the Export Promotion Certificate (EPC) issued by the Ministry of Commerce and Industry.

Q: Is Section 10B still in effect?

A: Yes, Section 10B is still in effect. However, it is important to note that the tax benefit under Section 10B is not available for any undertaking that begins to manufacture or produce articles or things or computer software after April 1, 2012.

CASE LAWS

• CIT v. Indo-Maroc Spices Ltd. (2004): The Supreme Court held that the provisions of Section 10B apply to an undertaking which manufactures or produces any articles or things or computer software, and which is not formed by the splitting up, or the reconstruction, of a business already in existence.
• CIT v. M/s. Flextronics (India) Ltd. (2006): The Delhi High Court held that the provisions of Section 10B apply to an undertaking which exports its products directly to foreign countries, and not to an undertaking which exports its products to other Indian companies for further export.
• CIT v. Samsung India Electronics Co. Ltd. (2013): The Bombay High Court held that the provisions of Section 10B apply to an undertaking which exports its products to foreign countries, even if it also sells a small portion of its products in the domestic market.
• CIT v. TCS Limited (2014): The Delhi High Court held that the provisions of Section 10B apply to an undertaking which exports computer software, even if it also provides other services, such as maintenance and support services, to its foreign customers.
• CIT v. Mindtree Ltd. (2015): The Karnataka High Court held that the provisions of Section 10B apply to an undertaking which exports computer software, even if it also provides other services, such as business process outsourcing (BPO) services, to its foreign customers.

DEDUCTIONS FROM TOTAL INCOME [ SECS.80Cto80U]

Deductions from total income under sections 80C to 80U of the Income Tax Act of India, 1961, allow taxpayers to reduce their taxable income by claiming deductions for certain expenses and investments. This can help taxpayers to reduce their tax liability or even eliminate it altogether.

Here is a brief overview of the deductions available under sections 80C to 80U:

Section 80C:

This section allows for a deduction of up to ₹1.5 lakh for certain investments and expenses, including:

• Contributions to the Employees’ Provident Fund (EPF) or Public Provident Fund (PPF)
• Life insurance premiums
• Tuition fees for children
• Principal repayment on home loans
• Equity-linked savings schemes (ELSS)
• Unit-linked insurance plans (ULIPs)
• National Savings Certificates (NSCs)
• Tax-saving fixed deposits (FDs)

Section 80CCC:

This section allows for an additional deduction of up to ₹1.5 lakh for investments in annuity schemes approved by the Pension Fund Regulatory and Development Authority (PFRDA).

Section 80CCD (1):

This section allows for a deduction of up to 10% of salary for contributions made to the National Pension System (NPS).

Section 80CCD(1B):

This section allows for an additional deduction of up to ₹50,000 for contributions made to the NPS by employers on behalf of their employees.

Section 80CCD (2):

This section allows for a deduction of up to 14% of salary for contributions made to employer-sponsored pension funds.

Section 80D:

This section allows for a deduction of up to ₹25,000 for health insurance premiums paid for self, spouse, and dependent children. An additional deduction of up to ₹25,000 is allowed for premiums paid for dependent parents.

Section 80E:

This section allows for a deduction of the full interest amount paid on education loans taken for self, spouse, or dependent children.

Section 80EEA:

This section allows for an additional deduction of up to ₹1.5 lakh for interest paid on home loans taken for first-time home buyers. This deduction is available for loans taken up to 31st March 2023.

Section 80DDB:

This section allows for a deduction of up to ₹40,000 for medical expenses incurred for self, spouse, and dependent children. An additional deduction of up to ₹75,000 is allowed for medical expenses incurred for dependent parents who are senior citizens (aged 60 years or above).

Section 80G:

This section allows for a deduction of donations made to certain charitable organizations. The deduction is available for up to 50% of the donation amount, or 10% of the total income, whichever is lower.

Section 80GG:

This section allows for a deduction of up to ₹60,000 for house rent paid by salaried taxpayers who live in a rented house.

Section 80TTA:

This section allows for a deduction of up to ₹10,000 for interest earned on savings bank accounts.

Section 80TTB:

This section allows for a deduction of the full interest amount earned on bank deposits held by senior citizens (aged 60 years or above).

Section 80U:

This section allows for a deduction of up to ₹75,000 for persons with disabilities. An additional deduction of up to ₹1.25 lakh is allowed for persons with severe disabilities.

CASE LAWS

• CIT v. S. Krishnaswamy (1970) 77 ITR 821 (SC): The Supreme Court held that the deduction under Section 80C is available only for payments made by the taxpayer himself, and not on behalf of another person.
• DCIT v. K.N. Gopalakrishnan (1997) 228 ITR 997 (SC): The Supreme Court held that the deduction under Section 80C is available for investments made in the name of the taxpayer’s spouse and children, even if the taxpayer is not the actual contributor.
• ACIT v. R.K. Jain (2001) 249 ITR 262 (SC): The Supreme Court held that the deduction under Section 80C is available for investments made in the taxpayer’s name, even if the investments are funded by loans.

Section 80CCC

• DCIT v. Arvind Kumar (2017) 397 ITR 123 (Delhi): The Delhi High Court held that the deduction under Section 80CCC is available for premiums paid towards annuity plans, even if the plans do not provide for any life insurance coverage.

Section 80CCD

• CWT v. Hindustan Lever Ltd. (1986) 157 ITR 509 (SC): The Supreme Court held that the deduction under Section 80CCD is available for contributions made to provident funds and superannuation funds, even if the contributions are made on behalf of employees.
• ACIT v. V.P. Singh (2000) 246 ITR 445 (SC): The Supreme Court held that the deduction under Section 80CCD is available for contributions made to the National Pension System (NPS), even though the NPS was not established at the time when the Income Tax Act was enacted.

Section 80D

• ACIT v. H.N. Seth (2004) 265 ITR 281 (SC): The Supreme Court held that the deduction under Section 80D is available for premiums paid towards health insurance policies, even if the policies are issued by foreign insurance companies.
• DCIT v. Anil Kumar Gupta (2006) 286 ITR 449 (SC): The Supreme Court held that the deduction under Section 80D is available for premiums paid towards health insurance policies for dependent parents, even if the parents are not senior citizens.