2013 (4) TMI 781 - AT - Income Tax

Summary

Issues involved: Appeal by department against order of CIT(A) relating to AY 2008-09, revolving around allowing deduction u/s 80B.

Issue of Allowing Deduction u/s 10B:

The case involved the demerger of M/s Gebbs Technology Pvt Ltd (GTPL) and the subsequent claim for deduction u/s 10B by the assessee. The AO initially disallowed the deduction based on the grounds that the assessee had not employed its own manpower and had got its work done on job work. However, the assessee argued that GTPL had commenced manufacturing activities prior to the demerger and had claimed deduction u/s 10B in earlier years. The CIT(A) allowed the deduction, citing similar decisions in earlier years. The Tribunal also upheld the CIT(A)'s order for previous years. The Tribunal found no reason to interfere with the CIT(A)'s decision, as it was consistent with previous rulings. Therefore, the Tribunal confirmed the order of CIT(A) and rejected the department's appeal, ultimately dismissing the department's appeal.

Conclusion:

The Tribunal dismissed the department's appeal, confirming the order of CIT(A) to allow the deduction u/s 10B for the year under consideration, based on consistency with previous rulings.