2013 (2) TMI 749 - AT - Income Tax

Summary

Issues involved: Appeal against the order of Ld. CIT(A)-Valsad regarding deduction u/s 80IB of the Act.

Summary:
The Revenue's appeal was based on the denial of deduction u/s 80IB of the Act due to the absence of a factory license before commencing manufacturing activities. The assessment order for the year in question disallowed the deduction based on a similar issue in a previous assessment year. The assessee relied on a previous ITAT decision in their favor for A.Y. 2005-06, establishing eligibility for the deduction u/s 80IB. The Ld. CIT(A) upheld the assessee's eligibility for the deduction, directing the A.O. to grant the deduction as per the Act. Consequently, the Revenue's appeal was dismissed, and the decision of the Ld. CIT(A) was upheld.

In conclusion, the appeal centered on the eligibility of the assessee for deduction u/s 80IB of the Act, with the Ld. CIT(A) ruling in favor of the assessee based on precedent and directing the A.O. to grant the deduction as per the provisions of the Act.