Dodla Dairy has received a favorable order regarding deductions claimed under Section 80-IB of the Income Tax Act, 1961 for assessment years 2012-13 to 2017-18. The Income Tax Appellate Tribunal (ITAT) dismissed appeals, upholding the Commissioner of Income Tax (Appeals) [CIT(A)] order, potentially leading to a tax refund of INR 26.2 crores (including interest). The Revenue may appeal the decision.
Favorable Ruling on Income Tax Deduction
Dodla Dairy has received a favorable order relating to income tax deductions claimed under Section 80-IB of the Income Tax Act of 1961. The case pertains to Assessment Years 2012-13, 2013-14, 2014-15, 2016-17, and 2017-18.
Details of the ITAT Order
The Assessing Officer had initially disallowed the deductions, but the Commissioner of Income Tax (Appeals) [CIT(A)] later passed favorable orders allowing them. Consequently, the AO issued Orders Giving Effect (OGE) granting a refund of INR 26.2 crores (including tax and interest).
Potential Tax Refund
The Revenue appealed to the Income Tax Appellate Tribunal (ITAT), which dismissed the appeals and upheld the CIT(A) order, thereby allowing the deduction under Section 80-IB. This may result in Dodla Dairy receiving a tax refund of INR 26.2 crores (including interest). The revenue retains the option to appeal before the High Court.
Additional Refund Expected
The company is yet to receive the tax refund of INR 26.2 crores. Additionally, the company estimates it is eligible for an additional refund of approximately INR 6.7 crores (including interest) due to errors in the tax computation of OGE. Dodla Dairy is in the process of submitting rectification applications related to this matter.
Source: BSE
