2010 (8) TMI 1029 - AT - Income Tax

Summary

Issues involved:
The issues involved in this case are related to the deduction claimed under section 80IB of the Income Tax Act for the assessment year 2006-07. The main issues revolve around the eligibility of the assessee to claim the deduction u/s 80IB and the submission of Form No. 10CCB.

Deduction u/s 80IB:
The Revenue filed an appeal against the order of CIT(A) regarding the deduction claimed u/s 80IB by the assessee company, a dealer and manufacturer of cables. The AO disallowed the deduction citing reasons such as the merger of a subsidiary company, completion of 12 years as per annual report, and non-submission of Form No. 10CCB. However, the CIT(A) directed the AO to allow the deduction of &8377; 62,07,153/- as per the provisions of the Act. The CIT(A) clarified that after the merger, the resulting company is entitled to the deduction under sub-section 12 of 80IB, and not under 80IB(2)(ii) Explanation 2. The CIT(A) also noted that the deduction under 80IB was claimed by the subsidiary company for the first time in AY 1999-2000. The ITAT Mumbai upheld the CIT(A)'s order, confirming the eligibility of the assessee for the deduction u/s 80IB.

Form No. 10CCB Submission:
Another issue raised was the non-furnishing of Form No. 10CCB by the assessee. The AO claimed that the form was not submitted, while the CIT(A) stated that it was provided to the AO before the assessment order. The ITAT Mumbai remitted this matter back to the CIT(A) to examine whether the form was indeed furnished before the AO and to decide the issue accordingly, providing a reasonable opportunity of hearing to both sides.

In conclusion, the ITAT Mumbai upheld the CIT(A)'s decision regarding the deduction u/s 80IB, confirming the eligibility of the assessee for the claimed deduction. The issue of Form No. 10CCB submission was remitted back to the CIT(A) for further examination.