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Issues involved: Revenue's challenge to the order of Ld. CIT(A)-III, Pune regarding deduction claimed u/s. 10A for STPI units for A.Y. 2004-05.
Summary: 1. The Revenue challenged the Ld. CIT(A)'s order deleting the disallowance of deduction u/s. 10A for STPI units due to discrepancies in the claim and books results. 2. The CIT(A) erred in allowing the claim without giving an opportunity to the department, despite confirming disallowance in a similar case u/s. 10A. 3. The Revenue sought to vacate the CIT(A)'s order and restore that of the AO. The assessee claimed deduction u/s. 10A for STP units in Pune and Chennai for A.Y. 2004-05, which the AO rejected, citing discrepancies in the books of account. The AO estimated business profits for the STP units based on industry standards, disallowing a portion of the claimed deduction. The AO's approach was influenced by past assessments and comparisons with other companies. The CIT(A) disagreed with the AO's approach, allowing the entire claim and deleting the addition. The Revenue's appeal was dismissed by the ITAT Pune, which found no independent defects in the assessee's books of account for A.Y. 2004-05. The ITAT held that the AO's reliance on past assessments was unfounded and confirmed the CIT(A)'s order. The Revenue's contention that no opportunity was given to the Department was dismissed by the ITAT, emphasizing the independence of each accounting year. Ultimately, all grounds raised by the Revenue were dismissed, and the appeal was rejected. The ITAT Pune pronounced the judgment on 13-11-2013, upholding the CIT(A)'s decision in favor of the assessee.
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