2010 (11) TMI 935 - AT - Income Tax

Summary

Issues involved: Disallowance of deduction under Section 80IB of the Income Tax Act.

Summary:
The Appellate Tribunal ITAT Ahmedabad heard an appeal by the assessee against the Commissioner of Income Tax (Appeals)'s order regarding disallowance of deduction under Section 80IB of the Income Tax Act. The Assessing Officer had disallowed the claim as the assessee was not registered as an SSI unit under the Industrial Development and Regulations Act, based on a provisional registration certificate. However, the ITAT considered a similar issue in the assessee's case for A.Y.1999-2000 and held that registration is not a pre-condition to avail the benefit of deduction under Section 80IB. The ITAT directed the AO to allow the claim for deduction under Section 80IA in the previous case. The ITAT in the current case also held that the assessee should not be denied the claim of deduction under Section 80IA merely on the technical ground of registration, as the assessee was regarded as an SSI unit by all departments. Therefore, the ITAT directed the AO to allow the claim under Section 80IB in accordance with the law. The assessee's appeal was allowed, and the order was pronounced on 26th November, 2010.