2012 (2) TMI 525 - AT - Income Tax

Summary

Issues Involved:
The judgment involves the issue of the allowability of deduction u/s. 80IB for different units of a business claimed by the assessee as independent units.

Comprehensive Details:

Issue 1: Allowability of Deduction u/s. 80IB for Unit V
The dispute revolved around the deduction u/s. 80IB claimed by the assessee for Unit V, along with other units. The Assessing Officer (AO) disallowed the deduction for Unit V based on a search operation that concluded the units, except Unit IV, were not independent. The CIT(A) allowed the claim, citing previous Tribunal decisions in the assessee's favor for similar assessment years.

The Tribunal examined the records and noted that previous Tribunal decisions favored the assessee's claim of treating the units as separate and independent. The Tribunal referred to the search operation and the unity of control observed by the AO. The Tribunal upheld the CIT(A)'s decision based on the consistency of facts with previous assessment years.

The Tribunal highlighted that in previous assessment years, the Tribunal had allowed the claim of deduction u/s. 80IB for the assessee's units treated as separate and independent. Given the identical facts, the Tribunal found no merit in the Revenue's appeal and upheld the CIT(A)'s decision in favor of the assessee regarding Unit V.

Therefore, the Tribunal dismissed the appeal of the Revenue, affirming the CIT(A)'s decision to allow the deduction u/s. 80IB for Unit V as an independent unit.

The judgment was pronounced on 9th February 2012.