2012 (10) TMI 1091 - AT - Income Tax

Summary

Issues involved:
The judgment involves appeals filed by the Revenue for assessment years 2006-07 & 2005-06, and a Cross Objection filed by the assessee for AY 2005-06 against orders of the Commissioner of Income Tax (Appeals)-XV, Ahmedabad.

Appeal for AY 2005-06:
The Revenue appealed against the deletion of disallowance amounting to Rs. 1,37,48,745 made by the Assessing Officer under section 80IB(10) of the Income-tax Act. The assessee, an organizer-cum-project consultant, had claimed this deduction, which was disallowed by the AO in the scrutiny assessment. The CIT(A) allowed the appeal, leading to the Revenue's appeal before the ITAT. The ITAT noted the objections raised by the AO regarding the completion of construction work and the status of the assessee as a project consultant. The ITAT found that these objections were not adequately addressed by the CIT(A) and decided to restore the matter back to the CIT(A) for fresh consideration in light of relevant judgments.

Appeal for AY 2006-07:
In a consistent view with the appeal for AY 2005-06, the ITAT allowed the Revenue's appeal for statistical purposes, indicating that the grounds raised by the Revenue were valid. The appeal for AY 2006-07 was also allowed for statistical purposes.

Cross Objection for AY 2005-06:
The assessee raised a Cross Objection seeking a higher deduction under section 80-I(10). However, during the proceedings, the assessee's counsel decided not to press the Cross Objection, leading to its dismissal as not pressed.

In conclusion, the ITAT allowed both appeals of the Revenue for statistical purposes and dismissed the assessee's Cross Objection as not pressed.