2010 (4) TMI 1099 - AT - Income Tax

Summary

Issues involved: Appeal filed by Revenue against CIT(A) order for AY 2006-07 regarding deduction u/s 80IB of the IT Act.

Issue 1: Deduction u/s 80IB

The appeal was filed by the Revenue against the order of CIT(A) for AY 2006-07, concerning the allowance of deduction to the assessee u/s 80IB of the IT Act. The Tribunal noted that in the assessee's own case for the preceding AY 2005-06, a similar issue was dealt with, and the deduction u/s 80IB was allowed. The Tribunal observed that u/s 80IB, deduction is permitted to small scale industrial undertakings that begin manufacturing during a specified period. It was highlighted that in the case at hand, there was no splitting up or reconstruction of the business, but rather a change in the constitution of the industrial concern. The Tribunal, in line with its previous decision and the finding of the CIT(A), upheld the allowance of the deduction u/s 80IB for the relevant period, as the conditions disqualifying the deduction were not present. Consequently, the appeal of the Revenue was dismissed, affirming the order of the CIT(A).

This summary provides a detailed overview of the judgment, focusing on the issues involved and the Tribunal's decision regarding the deduction u/s 80IB of the IT Act.